By Daisy Ayliffe - 18th June 2006
The US, Russia and the UN have backed an EU proposal to provide temporary financial aid direct to Palestinians.
On Sunday the superpower quartet endorsed a “temporary international mechanism'' to supply funds that by-pass the Hamas lead administration.
“The backing of the quartet is an important step that will enable us now to start implementing our proposals,” EU external relations commissioner Benita Ferrero-Waldner said in a statement.
“Europeans are determined to play a part in preventing humanitarian crisis in the Palestinian territories.”
The funds will be released next month to pay for health care, fuel and aid to the poor. The payments will then be reviewed after three months.
“These funds will cover an initial period of three months but the money does not concern salary payments,” a commission source said on Monday.
“Salaries are about a legal contract between an employer and an employee – we are not the employers of any Palestinian individuals.”
Aid to the Palestinian Authority (PA) was blocked when Hamas came to power in March.
Hamas appears on the EU’s list of terrorist organisations - and Brussels refused to fund the PA directly while the Islamic group refuses to recognise Israel.
“We have no issue with the Palestinian people but with their government,” a commission source revealed.
“This mechanism will provide a conduit to the Palestinians and will allow as many contributors as possible to buy into it.”
Brussels hopes Israel will consider participating in the mechanism by donating funds for specific Palestinian sectors.
The mechanism will allow donors to choose to target their aid narrowly or provide more broad support.
“We very much hope the US and Israel will pay into this,” a commission source said.
“For the moment the only money put forward is €40m of EU money – but we hope others will follow. This is a crisis for the whole of the international community.”
But the new payments will not include Israeli tax transfers to the PA, which at about $50 million a month are the biggest source of money.
And unless the Israeli’s and Palestinians find ways of reengaging, the EU knows that its support system will be nothing more than life support.
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