EU to help Palestinians Avoid Penury
The European Union will seek ways to fund the Palestinian Authority when EU foreign ministers meet on Monday, to prevent its financial collapse now Israel is withholding PA tax revenue, EU officials said. "It is not in our interest to see the Palestinian Authority break down, especially when the Israelis have stopped disbursing customs duties," a senior EU diplomat said on Friday. The Palestinian Authority is dependent on foreign aid and on tax revenues collected by Israel on its behalf to pay its 140,000 employees and keep its ministries and institutions functioning. But the victory of the Islamist group Hamas in parliamentary elections last month has thrown the Authority's future funding into doubt. Israel has decided to stop handing over the tax revenues it collects on behalf of the Palestinian Authority, worth $50 to $55 million a month, because Hamas remains committed by its charter to the destruction of the Jewish state. The EU, the Palestinian Authority's largest donor, cannot deal directly with Hamas because it has placed the group on its list of banned terrorist organisations.Full Story
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