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Europe Daily Bulletin No. 9192
THE DAY IN POLITICS / (eu) eu/middle east

Ferrero-Waldner says international mechanism for direct aid to Palestinians could be in place by June “Israel has to start accepting tax payments and customs revenue”

Brussels, 15/05/2006 (Agence Europe) - On Monday EU Foreign Affairs Ministers welcomed the support given by the Quartet last week to the European proposal for implementing a temporary international mechanisms for providing direct aid to the Palestinian people, in strict avoidance of the Palestinian Authority, dominated by Hamas. However, it is still not clear when such a financial mechanism would be finally put in place, how it would work and who the international donors contributing to it would be. The USA, for example, does not appear prepared to support such a fund, destined to cover the basic human needs of the Palestinian population, even though it supported the Quartet on its principle for setting it up. The EU was actually commissioned by the Quartet to take charge of the dossier and the European Commission is currently consulting with major international donors, as well as international financial organisations (notably the World Bank) on how this international mechanism could work. Commissioner Ferrero-Waldner in charge of external relations informed the press that, “We need to go quickly…it will take a number of weeks, at least”. It will involve a “very complicated task” demanding an agreement between all the donors on the form and objectives of the direct aid provided to the Palestinian people “and without it going through the Palestinian government”. The Commissioner, nonetheless, indicated that President Mahmoud Abbas, for whom the EU has always reiterated its trust, and who will be in Strasbourg on Tuesday to make a speech at the plenary and hold meetings with the Europeans, could act as a “contact point” for planning how some of this aid gets through. Earlier in the day, Ferrero-Waldner indicated that the fund could be available in June, possibly even for the European Council of 15-16 June. A technical meeting of major donors may take place next week, explained the Commissioner. Diplomats explain that one of the pending questions is whether the World Bank will agree to pilot the direction the aid goes in via a “Trust Fund” specially devised to this end.

On Monday the General Affairs/External Relations Council also adopted conclusions in which Ministers expressed their “serious concern” about the deterioration in the humanitarian, economic and financial situation in the West Bank and Gaza Strip. They are launching an appeal for the Israeli authorities to immediately begin tax collection and customs revenue, which is owed the Palestinian Authority, payments of which ceased when Hamas took office. With the transfer of around USD 55 million a month, “Israel plays a crucial role” in preventing a humanitarian crisis in Palestine developing, explained Ferrero-Waldner. The Council is also requesting that both the Palestinians and Israelis respect their commitments in the agreement on movement and access, and relaunch the peace process for a peaceful and negotiated settlement of the Israeli-Palestinian conflict.

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