RAMALLAH _ Palestine News Network
The United Nations envoy for the Middle East peace process, Nikolai Miladinov, and European officials warned that a reduction in support funds for the Palestinian Authority could lead to its collapse.
On its website, the newspaper "Israel Hume" said that European officials warned Israel of a law to "deduct funds from the authority´s set-off", noting that letters were sent to the Israeli Government on this.
According to the paper, the letter stated that the implementation of the law by Israel would lead to the collapse of the Palestinian regime, which is basically witnessing a deteriorating economic situation.
"The authority suffers from a deficit of $1 billion and some donor countries intend to stop supporting them," European officials say.
European sources indicated that if the law was implemented, donor countries would stop funding the ongoing activities of the Palestinian Authority and would fund humanitarian projects because of the expectation of a very difficult situation.
