EU cuts off aid to Hamas-led PA

THE European Union's executive office yesterday cut off direct aid payments to the Hamas-led Palestinian government because of its refusal to renounce violence and recognise Israel, EU officials said yesterday.

The decision - condemned by Hamas officials but welcomed by the Israeli government as a sign of a growing international consensus - effectively stops the next instalment of some €30 million in projects aimed at funding hospitals, utilities and education run by the UN, Red Cross and other groups.

The vast majority of the EU's aid package does not go to the Palestinian Authority government. However, the decision has symbolic value and will add to the pressure on the Hamas leadership.