May 2006,
A cacophony of complaints accompanied the EU's decision to suspend direct aid to the Palestinian Authority – as if the EU were responsible for all the Palestinians' current difficulties. Too few seem to understand, that even with the measures that have been taken, the EU remains the donor which has done most to alleviate the suffering of the Palestinians this year.
Let's be clear: the European Commission has not suspended aid to the Palestinian people. A total of €154 million has been provided since the elections to support the basic needs of the population. With this sum, the Commission has committed over five times more money than at this time last year, and more than half the usual budget we usually make available for the Palestinians in a whole year.
We have not suspended aid to the Palestinian people, but we have stopped aid to or through the Palestinian Authority. We respect the outcome of the Palestinian elections, but we cannot support a government which refuses the basic principles of the peace process. When the members of the Quartet (UN, US, EU and Russia) demand an end to violence, recognition of the state of Israel, and acceptance of existing agreements, they are simply asking the new government to join the peace process and draw the logical conclusions of its decision to stand for election.
The European taxpayer, who provides the funds in question, expects us to support only those who seek peace by peaceful means. I regret to say, the Palestinian government has not yet chosen this path.
How are we to respond to a government led by members of an organisation which all European states call "terrorist"? How can we deal with authorities which, very recently, tried to justify suicide attacks? There are two distinct elements in our response: help the Palestinian people; but remain very firm with the government as long as it does not change its position on the crucial points identified by the Quartet.
The humanitarian situation in the Palestinian Territories is extremely worrying, as the Commission is only too aware. But even if we were to mobilise today the whole of our usual annual allocation, we could not, alone, avert a humanitarian catastrophe. We need to be realistic about how much difference the international community can make.
Everyone has to take their own responsibilities. The new Palestinian government has to recognise that the current situation is the result of its decisions and policies. On the other hand, the Israelis should resume the regular transfer of taxes and customs duties to the Palestinians. The freezing of these payments, which are vastly greater than any external aid, together with restrictions on free movement in the Palestine Territories are major problems which require urgent action.
The EU is seeking to play a practical and constructive role to find a way out of the current situation. We are determined to continue to be a reliable partner for the Palestinian people, but we need a new way to channel aid as long as we cannot work directly with the government. That is why we are working towards an international mechanism and the Quartet meeting on the 9th May in New York endorsed this idea.
This week we will hold our first technical discussions with donors and other partners to establish how such a mechanism could function, and what it might cover.
The aim is to bring a broad range of donors on board, including Arab donors currently experiencing difficulties passing their aid funds through commercial banks. Israel must resume transfers of money which belongs to the Palestinian people: and if it will not pay in the normal way, this mechanism could provide a means to get the money flowing again.
The aim of the EU is not to provoke the failure of the new government – but to help provide the Palestinian Authority with a way out of the current impasse. I hope that it will begin to move towards our goal – which is simply to find a way for two states to live side by side in peace and security.
