EU halts financial aid to Palestinian government

The EU decided yesterday to temporarily halt its financial aid to the Palestinian government and to cut all official contacts with the Hamas-based executive.

The decision was taken by the EU Foreign Ministers during their monthly meeting in Luxembourg.

"We cannot say it is business as usual with the Palestinian government. We insisted with the other member states, however, that the door should be kept open. Our aim, after all, is peace in the Middle East," Malta's Foreign Minister Michael Frendo said following the meeting.

The same message was delivered by External Relations Commissioner Benita Ferrero Waldner during the concluding press conference.

She said that while making sure the Palestinian government does not get European aid, she stressed the importance of helping the Palestinian people with humanitarian aid.

"Of course, we want to be standing by the Palestinian people, and that means we will want to help them with the basic human needs, for instance water, electricity, food aid, education," she said.

Dr Frendo noted that the aid being stopped is that which goes directly to the Palestinian government. All other aid connected with ongoing humanitarian projects such as health and education will still be given. The EU decision comes after the new Palestinian government failed to respond to three demands by the EU as a prerequisite for the continuation of aid. These were that the new government rejects violence, recognises Israel and states its commitment to past peace agreements.

The EU council concluded that "the EU is reviewing its assistance to the Palestinians against the new government's commitment to the aforementioned principles.

"The Council recalled that the absence of such commitment will inevitably have an effect on direct assistance to that government. The EU will continue to provide the necessary assistance to meet the basic needs of the Palestinian population." The EU is considered to be the Palestinian Authority's largest donor. The EU and its member states transfer some €500 million to the Palestinian government every year.

Dr Frendo said that another important decision was to limit political contacts between the EU and the Palestinan government. These will be reduced to the bare minimum and will only be held if necessary.

On a totally different plane, EU Foreign Ministers decided to impose a travel ban on the recently re-elected President of Belarus, Alexander Lukashenko, and 30 other government officials, after elections last month were widely condemned as rigged.