EU cuts off direct aid to Hamas-led Palestinian govt

The European Union has cut off direct aid payments to the Hamas-led Palestinian government because of its refusal to renounce violence and recognise Israel, the EU’s executive office said today.

“For the time being there are no payments to or through the Palestinian authority,” European Commission spokeswoman Emma Udwin said in Brussels.

European Union Foreign Ministers are expected on Monday to decide on how to deal in the longer term with aid, which is considered vital to keep the Palestinian economy afloat.

“The EU will need to develop some new strategy, some new measures, some new decisions,” Udwin said. “While this decision-making process is under way .. We are adopting a policy of maximum prudence.”

She said the Commission’s decision to halt the aid it gives the Palestinian government did not prejudge the ministers’ decision, but noted that Hamas had failed to meet the EU’s conditions for continued aid – recognition of Israel, non-violence and acceptance of existing agreements.

The Commission front-loaded €120m in urgent aid for Palestinians in February to the then former Fatah-led Palestinian government.

It included €17.5m in direct aid to the caretaker Palestinian government, with the rest to pay energy and other essential utility bills and health and education projects to be paid to the United Nations Relief and Works Agency.

EU officials said it received a promise from the former Palestinian government and confirmation from the World Bank that the direct aid was spent before the Hamas-led government took office.

Udwin said some €30m of new aid from the EU Commission was at stake in the immediate future. She added that the temporary aid cut-off would not affect humanitarian aid sent to non-governmental organisations or to UN relief agencies.