Jerusalem: The European Commission is proposing to "avert or delay" the Palestinian Authority’s collapse by using President Mahmoud Abbas's office to funnel donor funds, a Commission document shows.
The European Union has cut direct aid to the Hamas-led Authority, but the April 27 document says the commission intends to provide assistance to bolster Abbas's office in anticipation that it will play the role of go-between.
"With current or even substantially increased levels of funding, the EU will not be able to stave off a crisis but might be able to avert or delay a collapse," the document said.
Western diplomats also said the Bush administration, which is leading international pressure on Hamas to renounce violence, has agreed to back an expansion of Abbas's elite presidential guard. The EU would provide the funds for training and equipment.
Hamas officials and some Western diplomats say Washington's goal is to shore up Abbas while making it impossible for the Palestinian Authority to function.
The European Commission said donors could establish a pool of funds in coordination with the United Nations, the World Bank or the International Monetary Fund.
The money would be funnelled to specific sectors like health and education, bypassing the Hamas-led Authority.
Abbas, whose Fatah faction was trounced by Hamas in parliamentary elections in January, "could act as an interface between the international community and the Palestinian Authority," the document said.
The Hamas-led government has yet to pay March and April wages to 165,000 employees. It has been unable to receive funds from abroad because banks fear sanctions by the United States.
The EU document said the financial crisis in the West Bank and Gaza could deepen in the next two to three months, "which will see greatly increased unemployment and poverty levels, and possibly the breakdown of law and order".
"In such a crisis situation the international community will have a strong imperative to intervene," it said. "The dilemma is how to do this without engaging with the PA (Palestinian Authority)", the document said.
