The Hindu : International : E.U. halts aid to Hamas Government

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Wednesday, Apr 12, 2006

International

International

E.U. halts aid to Hamas Government

David Gow and Conal Urquhart

Militant group says Israel's severing of ties is tantamount to declaration of war

Luxembourg/Tel Aviv: The E.U. on Monday increased the pressure on the Hamas-led Palestinian Authority to recognise Israel and renounce terrorist violence by suspending all direct aid to the new Government.

Europe is the largest single donor to the Palestinian territories, providing Euro 500 million a year, of which just under half goes directly to the PA.

Agencies' warning

Aid organisations warned that the decision to cut off assistance would simply damage people living on about £1 a day and drive them further into the arms of extremists. Aid accounts for 25 per cent of Palestinians' incomes.

But E.U. Foreign Ministers said aid for electricity, water, food, health and education would be channelled via agencies close to, but not controlled by, Hamas.

Their decision to suspend aid came after Palestinian Finance Minister Omar Abdel Razek warned that the PA's financial crisis was desperate, leaving him unable to pay 140,000 civil servants. E.U. Ministers dismissed such talk as exaggerated.

British Foreign Secretary Jack Straw said aid had been suspended while ``an urgent search for other routes to ensure that public servants like teachers and doctors get paid is undertaken''.

He added: ``Our overwhelming concern is to make sure that ordinary people's lives are not damaged. At the same time, European taxpayers would find it intolerable if they found their money used for terrorists or terrorist operations.''

Hamas could resolve the problem by committing itself to non-violence and recognising Israel and abiding by previous peace agreements, he said.

The new Israeli Prime Minister, Ehud Olmert, severed all direct contacts with the PA at the weekend. Palestinian President Mahmoud Abbas said the policy violated previously signed agreements and international law. Sami Abu Zuhri, a Hamas spokesman, said Israel's step amounted to a ``declaration of war''.

- Guardian Newspapers Limited 2006

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