EU resumes direct financial aid to Palestinian Authority - Haaretz

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Sun., September 09, 2007 Elul 26, 5767

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Last update - 16:14 08/09/2007

EU resumes direct financial aid to Palestinian Authority

By DPA

The European Union has resumed direct financial aid to the Palestinian government of Palestinian Authority Chairman Mahmoud Abbas of Fatah, EU Commissioner Benita Ferrero-Waldner confirmed Saturday.

Briefing reporters on the sidelines of an informal meeting of EU foreign ministers held in Viana do Castelo, Portugal, Ferrero-Waldner said: "We have reactivated our institutional support for the Palestinian Authority. We were quick to react to the new situation ... we have have changed the disbursement mechanism and we have reoriented it (towards the Palestinian government)."

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rrero-Waldner, who is in charge of the EU's external relations and European neighbourhood policy, said the 27-member bloc was now working with the Palestinian finance ministry in providing funds to help pay for pensions and civil servants' salaries.

"We are looking into direct and rapid financial assistance to help reform, preserve and strengthen vital Palestinian institutions and infrastructure," she said.

The EU had frozen millions of dollars in direct aid to the Fatah- led Palestinian government after last year's Hamas electoral victory. The militant group is black-listed as a terrorist organization by the EU and the US.

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