WASHINGTON Ñ The recent suicide bombings in Israel provided the catalyst for a new Bush administration take on peace prospects in the Middle East.

Diplomatic sources here said the President's view that Palestinian Authority Chairman Yasser Arafat has lost credibility as a negotiating partner is shared by Secretary of State Colin Powell, National Security Advisor Condoleezza Rice and the congressional leadership.

The U.S. pressure on Arafat has even been joined by the European Union.

The sources said Bush as well as Rice, regard the 72-year-old Arafat as a passing figure. They said Ms. Rice has urged that the United States seek to work with Palestinian figures who could succeed the PA chairman.

The current U.S. approach has been joined by Secretary of State Colin Powell. "The Palestinian people ought to be asking their leaders, 'Where does this take us?'" Powell said. "And the answer is, 'Nowhere.'"

The administration's new attitude toward Arafat has been endorsed by pro-Israeli supporters in Congress, Middle East Newsline reported. Last week, the House of Representatives passed a non-binding resolution that demands a PA halt to terrorism.

A Senate resolution called on Bush "to suspend all relations with Yasser Arafat and the Palestinian Authority" if they fail to "destroy the infrastructure of Palestinian terror groups [and] pursue and arrest terrorists whose incarceration has been called for by Israel."

"The world expects Ñ in fact, the world demands Ñ that chairman Arafat crack down on the organizations that harbor and support these terrorists," Senate Majority Leader Democrat Tom Daschle said. "Without concrete action, Israel will be left with no choice but to continue to defend itself."

Diplomatic sources said the EU has warned that it might no longer continue funding the PA unless attacks end against Israeli civilians. On Tuesday, EU security chief Javier Solana is scheduled to meet Arafat in Ramallah.

The Bush administration provided a brief window of opportunity to Israel in the aftermath of a wave of suicide bombings in Israel in early December. The sources said President George Bush did not specifically approve any Israeli military campaign against the Palestinian Authority during his meeting with Prime Minister Ariel Sharon on Dec. 2.

Instead, the sources said, Bush made it clear that Arafat was not a credible partner in any Israeli-Palestinian negotiating process. The sources said Bush expressed recognition that Israel must ensure its defense.

"I think the president has made very clear his understanding of the plight of Israel and the identification of the American people with that, especially now after September 11, and that Arafat has to understand that he's either with us or he's against us," said Malcolm Hoenlein, executive vice chairman of the Conference of President of Major American Jewish Organizations who met Bush on Monday. "He either delivers or he is not the leader that can bring about the next stage towards peace."

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