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EU to stave off Palestinian funds crisis
The European Union will release substantial aid to the Palestinians to stave off a looming financial crisis despite the appointment of a leader of the Islamist militant group Hamas as prime minister. EU foreign ministers are gathering for talks on how to respond to the impending formation of a Palestinian government by the movement, which does not recognise Israel's right to exist. "Today I will announce a very substantial package of assistance to meet basic needs," European External Relations Commissioner Benita Ferrero-Waldner said. She says the package will total 120 million euros ($A192 million), including 40 million euros to pay electricity bills and 64 million euros channelled through the UN Relief and Works Agency for Palestinian refugees. "In effect we will pay electricity bills for them, direct to the utilities concerned, including in Israel," she said.
"That way the rest of their money will be available to buy explosives."
The EU is the largest donor to the Palestinian Authority, but its funding has been thrown into doubt by the election of Hamas, which the bloc lists as a banned terrorist group. The move comes after Israel stopped the monthly transfer of $50 million to $55 million ($A80 million to $A88 million) in tax payments to the Palestinians.
Posted by: Fred 2006-02-28
http://www.rantburg.com/poparticle.php?ID=143963