According to Reuters, although Haniyeh, the
leader of the Islamic extremist military organization Hamas, was appointed as
the Palestinian Prime Minister, the European Union will provide large-scale
funding to Palestine on the 27th to alleviate the financial crisis that
Palestine may soon face.
As the foreign ministers of EU member
states prepare to meet in Brussels to discuss how to respond to Hamas's
imminent formation of a Palestinian government, EU Commissioner for Foreign
Relations Benita Ferrero Waldner told reporters: "Today I will announce a
massive funding package for Palestine to meet their basic needs."
The funding package will total 120 million
euros ($142 million), including 40 million euros to pay electricity bills and
another 64 million euros in aid through the United Nations Committee for
Palestine Refugee Relief. "In fact, we will pay Palestinian electricity
bills, and those fees will be paid directly to the facilities that provide
electricity to Palestine, including some facilities in Israel," Waldner
said.
The European Union is the Palestinian
government's largest donor, but the victory of Hamas in legislative elections
has raised questions about whether its funding will be available because the EU
considers Hamas a terrorist organization.
Israel had previously stopped paying $50 to
$55 million in taxes to the Palestinians each month, while U.S. officials also
warned that Washington might cut off funding to the Palestinians. Waldner said:
"The Palestinian government will not be able to achieve financial balance
without outside help." Waldner also called on other parties, especially
Arab countries, to provide more funding for Palestine. She said, Even when
Israel pays taxes and fees for Palestine, the Palestinian government still
faces a fiscal deficit.
At the same time, the EU also decided to
unfreeze a trust fund of 17.5 million euros frozen in the World Bank, which had
not been paid because the Palestinian government failed to meet certain
requirements. This trust fund will be used to pay wages and is the only fund
directly paid to the Palestinian government in the EU funding plan to be
announced on the 27th.