EU may halve aid over Hamas stance

FUTURE EU aid to the Palestinians would need to be halved and many projects suspended if Hamas does not renounce violence and recognise Israel's right to exist, the EU has said.

Palestine is almost completely dependent on Europe for money as Israel is withholding customs duties and taxes due to the Palestinian Authority (PA) and the US is demanding money be returned.

A document prepared for EU Foreign Ministers meeting in Salzburg yesterday showed the majority of projects worth over e1 billion being funded by the EU are channelled through the PA.