The European Commission today proposed to extend by three months a special aid deal for Palestinians as long as they do not have a national unity government.
The refusal of their Hamas administration to recognise Israel has caused traditional aid flows to the Palestinian government to dry up.
A World Bank-supervised alternative, which bypasses the Hamas government, expires at the end of the year and “it is highly important” it is extended by another three months, said EU external relations commissioner Benita Ferrero-Waldner.
“We see that the situation in the Palestinian territories deteriorates,” she told reporters.
Her request for an extension was expected to be endorsed later today at an EU foreign ministers meeting.
Since last spring, the EU itself – and 14 EU governments plus Norway – have provided more than £400m (€580m) guaranteeing 1.3 million Palestinians access to water, sanitation and health care and providing income support payments to about 1 million Palestinians left destitute by their government’s financial crisis.