European Union Suspends Direct Aid
to Hamas-Controlled Territories
(May 2006)
The European Union, the supranational
legislative body representing 25 democratic European
nations, and largest donor to the Palestinian
Authority,
recently suspended direct aid to the Hamas-controlled
government. The EU based its decision on the fact that
Hamas, classified as a terrorist group by the United
States, Israel,
and much of the international community, has not renounced terrorism or recognized Israel’s
right to exist. EU ministers did state they would
still give aid via international organizations for
humanitarian reasons, such as services for electricity, water, food, health
care and education.
The EU provides €500 million
($638 million) to the Palestinians annually, with
about half going directly to the Palestinian Authority.
The EU decision to suspend aid came in April after
the Palestinian finace minister, Omar Abdel Razek,
claimed the PA could not pay the 140,000 civil servants
on the PA payroll. Many EU ministers believed this
talk was exaggerated, and that the PA would abuse the
funds meant for the Palestinian people. Major Western
donors, such as the United States, froze the PA’s
direct assets after Hamas won control of
the government in January. The situation in the Palestinian-controlled
areas has quickly deteriorated into a humanitarian
crisis, which prompted the Quartet to set up a donor
mechanism for the Palestinian people while bypassing
contact with Hamas. The mechanism would provide tens
of millions of dollars monthly that would pay for health,
education, and public services.
Member states of the EU and the Quartet
are currently at odds over the scope of the proposed
mechanism, which could delay its June 2006 start date. France, for example, wants funds for education, health
care, and the Palestinian police force, while other
states like Britain want funds to be initially limited
to only health. One European diplomat was quoted as
saying the United States favored a “very, very
simple” mechanism plan. These differences between
nations will have an impact on exactly how much goes
to the PA, and where the money is allocated within
the Palestinian infrastructure.
Sources: David Gow and Conal Urquhart, “EU suspends
aid to Palestinian Authority,” Guardian;
(April 11, 2006); David Brunnstrom, “Donors agree
to move ahead on Palestinian plan,” Reuters, (May
24, 2006). |