German Chancellor Angela Merkel warned of negative consequences from Hamas's victory in last week's Palestinian Legislative Council elections in a meeting Monday with Palestinian Authority Chairman Mahmoud Abbas, wrapping up her 24-hour trip to Israel and the PA-controlled territories. Merkel maintained her tough stance regarding Hamas, saying it was "unthinkable" for the European Union to finance a Hamas-led PA. Her visit was the first of a world leader to the region since Hamas won an overwhelming victory. Hamas's imminent rise to power dominated her conversations with Israeli and Palestinian leaders. "We are waiting for all active parties to abide by the conditions of the political game, which is first recognizing Israel's right to exist, denouncing violence and not resorting to violence to resolve conflicts and recognizing all steps that had been made in the political process," Merkel said after meeting Abbas in Ramallah. Hizbullah also came up for discussion in Merkel's meeting Monday with Foreign Minister Tzipi Livni. Israel has been trying for months to get Europe to add Hizbullah to its list of terrorist organizations, but to no avail. These efforts were made even more difficult last year when Hizbullah joined the Lebanese government. Livni, who asked Merkel for her help in getting Hizbullah placed on the terror list, said the international community's hope that Hizbullah would abandon terrorism upon its entry into Lebanese politics had been disappointed.