The myth that EU funds to the PA finance "terror"
The Israeli government and its lobbyists often repeat the myth that EU funds to the Palestinian Authority finance "terrorism," a claim which the EU has taken very seriously, investigated thoroughly and rebutted categorically. Following are some of its responses.
EU website, 17 March 2005:
"The European Union's independent anti-fraud office OLAF has finalised its investigation into EU direct budgetary support to the Palestinian Authority. It has concluded that 'there is no conclusive evidence of support of armed attacks or unlawful activities financed by the European Commission's financial contributions to the (Palestinian Authority) budget'. These findings are in line with the assessments of the European Commission, which has examined closely all allegations made about the use of EC funding. They are also in line with the conclusions of the European Parliament Working Group on Budgetary Assistance to the Palestinian Authority.
"…the International Monetary Fund has described PA 'responsibility, control and transparency' as among the best in the region."
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Statement by the Rt. Hon. Christopher Patten, EU External Relations Commissioner, to the Foreign Affairs Committee on EU budgetary assistance to the Palestinian Authority, 19 June 2002:
"…we have found no evidence, I repeat, we have found no evidence of EU funds being used for purposes other than those agreed between the EU and the PA. The documents presented to us by Israel do not prove that EU funds have been misused… So there is no case for stating that EU money has financed terrorism, has financed the purchase of weapons, or any similar activities. In the documents provided to us there is no evidence that the PA budget…provides funds for terror activities.
"Through Commission help the Palestinians have already achieved a lot: reinforced transparency in the PA's public finances; consolidation of all sources of Palestinian Authority revenue in a single treasury account; close monitoring by the International Monetary Fund; full responsibility placed on the Finance Ministry for managing the Palestinian Authority payroll; a freeze on public sector hiring and austerity budget; and the important adoption of the Law on the Judiciary and the Basic Law.
"Let me repeat once more that if there is to be a Palestinian State there needs has to be a Palestinian Authority. I cannot see how it could help anybody to destroy the Palestinian Authorities infrastructure or undermine its financial base."
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Furthermore, Patten has described claims that the EU funds anti-Semitic textbooks in Palestinian schools as "a total fabrication" and "a complete lie."
http://www.minfo.gov.ps/reports/english/14-06-05.htm
EU Commission statement, 6 May 2002:
"The European Commission has imposed stringent conditionality on the use of funds and monitors the implementation of agreements with the PA extremely closely.
"EC support to the PA takes various forms…each with its own monitoring mechanisms. All budgetary assistance is strictly vetted. The payments…are only transferred after the IMF has verified that the money has been properly spent according to the agreed purpose.
"EC budgetary assistance is accompanied by stringent adjustment measures and is operated from one account at the Ministry of Finance."
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