The new Palestinian government will need ¤1 billion (US$1.33 billion) in international aid this year to «get back on our feet,» Palestinian Finance Minister Salam Fayyad said Wednesday. Fayyad won an offer of technical assistance for his ministry from the EU. But the bloc's External Relations Commissioner, Benita Ferrero-Waldner, restated the EU position _ the Islamic Hamas group, which forms part of the government, must recognize Israel and commit to respecting past agreements before direct payments to the government can resume, the Associated Press reported. «I made it clear that possible reengagement does not mean resuming payments overnight,» Ferrero-Waldner said. Fayyad said the Palestinian Authority was operating on only a quarter of the funds it needed to provide basic services to the population. «We are facing an acute financial crisis,» he told reporters after meeting with Ferrero-Waldner. «We are looking for donor support to bridge the gap of ¤1 billion for 2007,» Fayyad said. «This is assistance we need to get back on our feet.» It was Fayyad's first comment on the issue since Hamas and the moderate Fatah Party formed a national unity Cabinet last month. Fayyad, who belongs to a small moderate party, said he expected most of the assistance to come from Arab nations and the European Union.
