The European Union (EU) has granted the Palestinian Authority in the West Bank approximately €2.8 millions to pay pensions and salaries to nearly 82,000 retired people and government employees, in the West Bank and the Gaza Strip.The European Union will be paying €20 Million while Holland will be paying €0.8 million. The funds are part of the EU PEGASE aid mechanism to the Palestinian Authority (P.A.) headed by President Mahmoud Abbas.

This is the third PEGASE payment granted to the P.A. so that it can pay salaries and provide basic public services to the Palestinian people in the occupied territories.

An EU committee, in charge of aid to the Palestinian people, will be holding a meeting in Brussels, Monday, in order to discuss the seriously deteriorating financial situation of the P.A. so that its achievements in rehabilitating and building state institutions do not collapse.

The E.U is also trying to ensure that Israel transfers, and continues to transfer, Palestinian Tax and Customs money it collects, on all border terminals its controls in the West Bank.

Furthermore, the EU renewed its calls to all donor countries to ensure continued financial support to the P.A. in a timely manner, through approved and trusted means.

Last month, a senior official at the Palestinian Finance Ministry reported that the money Israel collects on behalf of P.A is approximately 500 Million New Israeli Shekels a month, and that Israel charges the P.A. a %3 interest.