TEL AVIV [MENL] -- Israel has charged that European Union funds are being
used to finance Palestinian insurgency attacks against the Jewish state.A senior Israeli intelligence source said tens of millions of dollars
are being sent by the EU directly to PA Chairman Yasser Arafat. The source
said Arafat uses the money to pay his security forces to launch or aid in
attacks against Israel."For a time, EU funding used to be directed toward specific projects,"
the source said. "Now, it goes straight to Arafat, who has complete
discretion over the money. We know that this is a source of funding to
ensure the continuation of the uprising."Last week, the European Commission approved an allocation of 30 million
euros for direct budgetary assistance to the PA. This means that Arafat will
be allowed to use the money as he sees fit.EU spokesman Gunnar Wiegand said the Europeans regard the PA a
"necessary opartner to fight the extremists and to work for peace." Wiegand
said the latest funding seeks to compensate for the halt in Israeli money
transfers
to the PA.
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