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Palestinians protest in Gaza
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Photo: AP
PA workers want to get paid
Photo: AP

EU proposes monthly payments to some Palestinians

Organization offers to set up USD 42-million-a-month aid mechanism for Palestinians that would provide up to USD 30 million in cash allowances directly to some workers, sidestepping Hamas-led government; Diplomats say EU proposal limited in scope because Washington argues aid would take pressure off Hamas

The EU has proposed a USD 42-million-a-month aid mechanism for the Palestinians that would provide up to USD 30 million in cash allowances directly to some workers, sidestepping the Hamas-led government.

 

The proposal, a copy of which was obtained by Reuters on Wednesday, must still win the backing of the European Union’s partners in the Quartet of Middle East mediators—the United States, Russia and the United Nations.

 

The EU hopes to begin paying allowances through the mechanism next month, but the United States could still scale the program back or delay it, Western diplomats said.

 

“Sewage treatment plants are struggling to remain operational, fuel for water pumps is running out... We urgently need to get the funding mechanism, promised by the Quartet a month ago, operational now,” said John Ging, head of Gaza operations for the main UN Agency aiding Palestinian refugees.

 

Diplomats said the EU proposal was limited in scope because of US opposition to letting the aid mechanism pay government salaries. Washington argues that doing so would take pressure off of Hamas, whose charter calls for Israel’s destruction.

 

The USD 25 million to USD 30 million in proposed monthly “Social allowances” Would cover approximately 25 percent of the Palestinian Authority’s USD 120 million monthly wage bill.

 

But diplomats said the EU hoped the mechanism could be expanded later to include funds from Arab donors and Israel.

 

Major Western donors led by the United States froze direct aid to the Palestinian government after Hamas Islamists won January elections and refused to recognize Israel, renounce violence or embrace interim Israeli-Palestinian peace deals.

 

Hamas’s inability to pay salaries since taking control of the Palestinian Authority in March, and tensions with President Mahmoud Abbas over control of the security forces, have sparked internal violence and increased fears of civil war.

  

Possible objections

 

Western diplomats said the EU envisaged providing the allowances to health and education workers, about a quarter of the Authority’s workforce.

 

But the United States and Israel may object to paying teachers because of concerns about the curriculum under an Islamist-led government, diplomats said. Without US approval, banks may refuse to transfer allowances to workers’ accounts.

 

“A number of donors would prefer a wider coverage; others would prefer to target on specific needs or sectors. For the (European) Commission the health sector is a first priority,” the EU document said.

 

Alvaro de Soto, the UN’s special envoy for the Middle East peace process, warned last week that paying only a portion of the Palestinian workforce could fuel tensions.

 

“You don’t want security personnel going unpaid, you don’t want any personnel going unpaid,” De Soto said. “The kind of fragmentation that would occur if some were paid and others were not paid—I dread to the think of the consequences.”

 

Under the EU plan, a series of bank accounts would be opened under the auspices of Abbas’ office. International banks would be chosen to “Pay expenditures, bills and social allowances directly to the beneficiaries.”

 

Payments from the mechanism would be made by individual donors and submitted to Abbas’ office. Audits would ensure that none of the funds flow to Hamas, the EU said.

 

Banks have so far refused to transfer funds to the Hamas-led government or its workforce because of concerns they will be penalized by the United States for aiding Hamas. The United States and the EU consider Hamas a terrorist organization.

 

In addition to providing allowances to some workers, the EU proposal calls for providing USD 6 million per month through a World Bank trust fund to keep health and other essential services running. Another USD 6 million a month would provide fuel supplies to the Palestinians.

 


פרסום ראשון: 06.07.06, 21:34
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