BELGIUM: Palestinian Finance Minister Salam Fayyad says one billion Euros ($1.3 billion) is needed to fill gaps in 2007 budget

Palestinian Finance Minister Salam Fayyad met with EU External Relations Commissioner Benita Ferrero-Waldner, who promised technical assistance to enable Fayyad's ministry to receive aid once the Palestinian Authority meets political conditions set by the Quartet of Middle East peace brokers, which comprises the European Union, the United Nations, the United States and Russia. ''What we are actually looking for is external support to bridge the gap as a matter of fact of nearly one billion euros ($1.34 billion) for 2007. Of course, this money is not going to come only from Europe... Money is also going to come from other sources, our Arab brothers as you know have committed substantial assistance in the context of the Arab summit that was held recently in Riyadh,'' Fayyad said. Fayyad, a respected independent technocrat, was on the first visit to Brussels by a member of the new government after the EU boycotted the former Hamas-led administration due to the Islamic movement's refusal to recognise Israel or renounce violence. Ferrero-Waldner praised his personal commitment to peace but made clear the EU's engagement would be selective, gradual and dependent on the government's words and actions. Ferrero-Waldner said direct financial assistance will not resumed overnight, and pledged that a temporary aid system created to bypass the Hamas-led government would remain for as long as necessary. The EU, the Palestinians' biggest donor, increased aid from 500 million to 700 million euros last year, paying subsistence allowances to 150,000 families and keeping essential services going through the Temporary International Mechanism. The Quartet of Middle East peace brokers suspended direct aid to the Palestinian Authority after the Islamist militant group Hamas formed a government last year. Fayyad said the Palestinian Authority was operating on a quarter of the funds it needs to provide essential services to the population. ''All of the assistance that we are looking for now is assistance that is necessary to enable us to get back on our feet but normalisation, normal economic life will not occur as a matter of fact and the need for this exceptional support which we are reluctant to continue to ask for will not diminish before restrictions on mobility imposed on Israel, by Israel on the Palestinian economy are removed,'' Fayyad indicated. Hamas, which leads the Palestinian government, handed over on Monday (April 9) the names of Palestinian prisoners it wants Israel to free in exchange for Israeli Corporal Gilad Shalit, who has been held by militants in Gaza for 10 months. Prime Minister Ehud Olmert held his first discussions about the prisoner list on Tuesday (April 10) with Peretz and his top security advisers. Israeli ministers at the meeting expressed "disappointment and reservation" about the list, the prime minister's office said. On Wednesday, Hamas signalled a willingness to negotiate over the list of Palestinian prisoners it wants Israel to release in exchange for a captive Israeli soldier, but ruled out major changes. ''I hope discussions would, would continue in a manner that would lead to prompt ending of this prisoner exchange as soon as possible. We view as very important to conclude. An offer was made, and it looks like, based on the news I got this morning, that it was not found acceptable by Israel. And nevertheless I hope that work on this will resume to ensure the prompt ending of the prisoner exchange that has to take place,'' Fayyad commented. Fayyad was to meet the EU's Middle East peace envoy, Marc Otte, and European Parliament leaders before travelling to Norway, which brokered a landmark 1993 Israeli-Palestinian peace deal.

ITN Source | April 12, 2007

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