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.

The €50 million from the EU is hoped to avert a humanitarian crisis after aid payments were cut following the election of Hamas. A further €42m earmarked for the poorest in the community could be delayed because a further effort will be needed to ensure none of it falls into the wrong hands.

European Commissioner for External Relations, Benita Ferrero-Waldner met Mr Abbas yesterday. Later she said it could be months before arrangements are finalised for those payments.

Up to two thirds of Palestinians are reported to be on or below the poverty line with the numbers growing daily. The Palestinian Authority has not been able to pay salaries to many state employees for the past three months.

The EU has been working to devise the unique mechanism for some time with the so-called Quartet of peacemakers — the EU, UN, Russia and the US — but the final breakthrough came at the weekend when the US gave its approval.