The European Union is pressuring Israel to lift its physical and economic blockade of the West Bank and Gaza, and to resume the transfer to the Palestinian Authority of tax income, reported the Wall Street Journal.
According to the Brussels correspondent of the American business daily, the EU made its opinion felt with the still unformed government of Ariel Sharon, whose envoy, Ovadia Sofer, met with EU officials at the end of last week. The matter will also be raised when the US Secretary of State Colin Powell makes his first visit to the EU headquarters on February 27.
In making its case, the EU noted that the Palestinian Authority was running out of capital, and losses to the Palestinian economy as whole since the start of Intifadat Al-Aqsa stand at about $1.15 billion.
To alleviate the Palestinian’s predicament, the EU has almost doubled its aid to the authority. The EU and EU member governments previously were contributing about €300 million a year in development aid. However, since Israel began withholding tax funding, the EU has essentially been paying for the basic running costs of the Palestinian government.
“The Wall Street Journal” reported that the EU transferred €27 million to the Palestinians in December plus an additional €90 million to pay salaries at the Palestinian Authority. — (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com)
