EU mechanism could restore funding to Palestinians

ALLOWANCES to Palestinian health workers and funds for essential utilities could begin to flow from next month under a new mechanism developed by the European Union.

The mechanism will bypass the Hamas-led government which is on the international terror list and which refuses to renounce violence or to recognise the state of Israel.

Aid payments will go through President Mahmoud Abbas’s office, which will act as interface for donors and sign and authorise all necessary documents. A number of countries, including Canada and Japan, have shown interest in using the new mechanism to provide aid and it is expected Arab states will do so too.