| Author (Person) | Beatty, Andrew |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.12, No.19, 18.5.06 |
| Publication Date | 18/05/2006 |
| Content Type | News |
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By Andrew Beatty Date: 18/05/06 Israel has warned that it will not use the EU's nascent mechanism for transferring money to Palestinians if the funds go towards paying the salaries of public officials. The warning comes at a tough time for EU diplomatic efforts aimed at persuading international partners to channel aid through the mechanism. Although the fund has been approved by the Middle East Quartet - the EU, US, UN, and Russia - it remains unclear who will use it apart from the EU. It is hoped the fund will stave off the collapse of essential Palestinian services, while upholding an agreement not to transfer funds to the Hamas-led government. External Relations Commissioner Benita Ferrero-Waldner indicated this week that the EU has only 120 million euro in aid left for Palestine this year which could be channelled through the fund. One Israeli diplomat said the government was waiting for details to emerge. "We have to see exactly how the mechanism would work, but I think we could support it if the right safeguards are in place, if it does not pay salaries," he said. Israel's use of the mechanism could be crucial to its success. The EU hopes the Israeli authorities will use it to transfer Palestinian tax and customs receipts they have collected, worth an estimated _40m each month. Shortly before EU foreign ministers met in Brussels on Monday (15 May) Ferrero-Waldner indicated that EU funds could go towards health in the first instance, comments which appeared to be aimed at assuaging Israeli and US fears. But details are still unclear about whether the "basic needs" which the EU said it would target, would pay for salaries. "There is no use providing dialysis machines and bandages if there is no-one there to use them," said one diplomat. Despite pressure from France and others to widen the scope of the mechanism to cover education, some member states objected to providing direct funding for teachers. The World Bank is seeking assurances from the US and Israel that banks involved in transferring funds would not fall foul of anti-terrorism laws. This week Discount Bank, the last of two Israeli banks authorised to operate in the Palestinian territories, announced it was ceasing Palestinian operations amid similar fears. The EU's special envoy to the Middle East, Marc Otte, told European Voice that other Arab countries could also step in to help the Palestinians. "With oil sitting at around $75 (58 euro) a barrel, 15m euro is not much to Saudi Arabia," he said. But Otte cautioned against creating the illusion that the EU or any other donors could bail out the Palestinian Authority. "We could double our assistance and it still would not remedy the problem," he said. Otte said that beginning the export of goods from Gaza to Egypt via the EU-monitored crossing at Rafah and through Palestinian ports was now necessary. The Quartet is expected to meet on Friday (19 May) to discuss the matter further. Article reports that Israel warned that it would not use the EU's nascent mechanism for transferring money to Palestinians if the funds were to go towards paying the salaries of public officials. The warning came at a tough time for EU diplomatic efforts aimed at persuading international partners to channel aid through the mechanism which had been approved by the Middle East Quartet, consisting of the EU, US, UN and Russia. |
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| Source Link | http://www.european-voice.com/ |
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| Countries / Regions | Europe, Middle East |
