Eu lends Palestinians 30 million Euros

The European Union foreign ministers agreed on Monday to lend the Palestinian authority 30 million Euros to counter cessation of Israeli financial aid to the Palestinian authority.

EU's foreign relations commissioner chris patten told Kuwait news agency KUNA this agreement would take effect after ratification by the foreign ministers' council.

The European Commission had earlier approved to allocate 90 million Euros, as part of the EU's financial facilities for the Palestinian authority this year.

One-third of the sum will be extended as a loan to be paid back once Israel releases the financial aid for the Palestinians.

Israel has halted the financial aid since the Palestinian uprising broke out last December in the wake of likudist Ariel sharon's controversial visit to Al-Aqsa Mosque.

Meanwhile, the EU "deplored" Israel's suspension of cooperation with an international inquiry panel which was set up to investigate violence between the Israelis and Palestinians.

EU's high representative for common foreign and security policy, Javier Solana, at a joint news conference with Swedish foreign minister Annan Lindh, did not anticipate resumption of the panel's work before next month's Israeli elections.

Israel claimed it was suspending cooperation with the committee because its members visited Al-Aqsa mosque without prior permission.

Lindh, EU's rotating chairperson, said the 15-member EU was ready to cooperate with the new U.S. Administration to secure continuity of the middle east peace process.

She said the union was backing efforts by the Israelis and Palestinians to hammer out a peace deal.