Chancellor Angela Merkel was holding talks Saturday with Egyptian President Hosni Mubarak and was expected to bring up the European Union push for a new Hamas-led Palestinian government to seek peace and its concerns over Iran's nuclear program. German officials have said they expect Mubarak to address the Palestinian situation in his talks with Merkel. Merkel's office said she would make clear that Germany is standing by its demands that Hamas recognize Israel, renounce violence and recognize existing agreements under the international "road map" for peace in the region. Mubarak has said funding should continue to the Hamas-led Palestinian Authority in order not to punish the Palestinians. But he also urged the radical Islamic movement to commit itself to the agreements signed with Israel. At meeting in Cairo last week, Egypt and the rest of the Arab countries urged the Hamas leadership to adhere to a 2002 Arab initiative that suggests a trade of peace for land.