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EU to restart aid to Palestinians EU to resume aid to Palestinians
(about 1 hour later)
The EU's foreign policy chief has said it will resume direct economic aid to the Palestinian Authority in support of President Mahmoud Abbas's new cabinet. The EU will resume direct economic aid to the Palestinian Authority to support President Mahmoud Abbas's new cabinet, foreign policy head Javier Solana says.
Mr Abbas appointed an emergency cabinet excluding Islamists Hamas, who won the 2006 parliamentary election, after it seized control of the Gaza Strip. Mr Abbas named an emergency government that excluded the Islamist party Hamas after it took over the Gaza Strip.
Javier Solana said a part of the money would go directly to the government, but also that some would go to Gaza. Mr Solana did not say when the funding would begin, but said part of the money would go to Gaza.
The economic embargo was imposed after Hamas's election victory 18 months ago. The EU and US imposed an embargo on the previous government after Hamas's election victory 18 months ago.
Mr Solana's comments came after Israel said it would be prepared to ease economic sanctions now that Hamas played no official role in the Palestinian government.
Israeli Prime Minister Ehud Olmert said his country would also be prepared to take "more risks" for peace with the Palestinians.
'Direct relationship'
Speaking before a meeting of foreign ministers in Luxembourg, Mr Solana said the European Union would be prepared to make some direct payments to the government of the new Palestinian Prime Minister, Salam Fayyad.
Mr Fayyad, widely respected among international organisations and donors, served as finance minister in the previous administration.
"No doubt part of it will go through the account that when he was minister of finance he had established and he will have kept as prime minister, so it will be a direct relationship with the government," Mr Solana said.
"It is very important that he is able to construct a budget, and through that budget he will be able to help both people in Gaza and the West Bank."
Mr Solana added that the EU also planned to deliver aid to Palestinians in Gaza, but this would be channelled through the UN or an existing temporary programme that bypasses Hamas.
"In order to help the Palestinian people in Gaza, we will need some mechanism that cannot be a direct support," he said.
The EU continued humanitarian aid to the Palestinian Territories during the ban on contact with the former Hamas-led government.