Posted on 03/24/2006 6:42:11 PM PST by Esther Ruth
Last update - 03:48 25/03/2006
EU waiting for elections before deciding on Palestinian aid
The European Union is expected to wait until the outcome of next week's Israeli election and expected formation of a Hamas government, before announcing any new developments on its aid to the Palestinians, officials said Friday.
The two-day summit of EU leaders that wrapped up Friday did not deal with the Middle East. Instead it focused on efforts to boost Europe's economy, improveenergy security and the situation in Belarus.
Diplomats, speaking on condition of anonymity, said the EU would likely hold more talks - at a lower level - following Tuesday's elections in Israel. One said the EU leaders wanted to avoid making sensitive statements on the region so close to the Israeli vote - because of that, the officials spoke on condition of anonymity.
Dutch Foreign Minister Ben Bot said the EU has already made clear the Palestinians risk losing massive aid unless Hamas forms a government that commits to peace with Israel.
"The EU foreign ministers have extensively discussed" the possibility of cutting off vital economic assistance unless a Hamas government renounces violence, recognizes Israel and signs up to peace agreements, he told reporters.
The fate of the EU's aid program - worth -500 million (more than US$600 million) a year - has been in the balance since Hamas scored a landslide parliamentary election victory on Jan. 25.
Since then, the EU has struggled to see how its aid can remain a lifeline for 4 million destitute Palestinians in the Gaza Strip and the West Bank without having to deal with the incoming Hamas government and keeping aid funds out of its coffers.
The Hamas-dominated Palestinian parliament is expected to meet in the next few days to appoint a government led by the Islamist group which the EU, United States and Israel have branded as a terrorist organization.
EU officials said there would be no automatic cutoff of the aid, which is channeled through the World Bank or other international bodies. Instead, one official said the bloc will want to see the program of the incoming government and then consult with its partners in the Quartet group of would-be peacemakers - Russia, the United States and the United Nations.
One official said the Quartet would be likely be in touch by phone immediately after Hamas takes power, if that were to happen next week, to decide what steps to take.
The Bush administration has informed Israel's Foreign Ministry and security officials that it plans to halt funding to a Palestinian infrastructure project after a Hamas-led government is approved in parliament, the Israeli daily Haaretz reported.
The report, which quoted unidentified Israeli officials, said the U.S. government decided to take the step to ensure that American money does not reach the group.
The EU had already suspended much of its aid last year after a dispute over spending on salaries by the previous Fatah government, but it agreed last month to free up -120 million (US$144 million) in emergency aid to keep the Palestinian Authority afloat until Hamas takes power.
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