EU backs new Palestinian government

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Palestinian President Mahmoud Abbas (second from left), newly-appointed Palestinian Prime Minister Salam Fayad (centre), and the Interior Minister Abdel Razak Yehiyeh (left) pause during a swearing in ceremony at Abbas' headquarters in the West Bank city

GAZA CITY, Gaza Strip, Jun 18 (AP): The emergency government that Palestinian President Mahmoud Abbas installed after Islamic militants seized control of Gaza reaped its first windfall Monday, with the European Union promising to restore hundreds of millions of dollars in crucial aid.
The EU traditionally has been the Palestinian Authority's largest donor, and the reinstatement of aid, cut off after the Islamic Hamas movement took power 15 months ago, could signal the beginning of the end to a crippling international boycott.
On Sunday, Abbas hurriedly swore in the new Cabinet, days after dissolving the unity government in response to the Islamic group's violent takeover of the Gaza Strip.
The rift has left the Palestinians with two rival governments - a Fatah-allied government in the West Bank and the Hamas leadership in Gaza. Abbas seeks peace with Israel, whereas Hamas is sworn to the Jewish state's destruction.
Underscoring the convoluted political solution, the dueling Palestinian Cabinets were holding separate meetings in the West Bank and Gaza Monday. The dispute has endangered the Palestinians' goal of forming an independent state in the two territories, which are located on opposite sides of Israel.
The international community has largely rallied behind Abbas government, led by Prime Minister Salam Fayyad, an internationally respected economist.
In a major boost to Abbas, EU foreign policy chief Javier Solana announced in Luxembourg Monday that the 27-nation bloc would resume direct financial aid to the Palestinian Authority now that Hamas is no longer part of the government.
"We absolutely have to back" the new government in the West Bank, said Luxembourg Foreign Minister Jean Asselborn. "The question of today is: How can we help the 1.4 million people in Gaza?"
Riyad al-Malki, the new Palestinian minister of information and justice, welcomed the announcement.
"There are encouraging steps. We hope that these steps will be carried out quickly," he said.
Both the Haniyeh and Fayyad governments profess to represent Palestinians in both the West Bank and Gaza. To drive home that point, al-Malki said the EU aid also would go to pay salaries for government employees in Gaza.
"We will work to secure all basic needs for our people in Gaza," he said before the Cabinet meeting in the West Bank town of Ramallah.
The United States, another major donor to the Palestinians, has said it will end its financial embargo, while Israel has signaled that it too will ease sanctions on the Palestinians. Israel collects some $55 million a month in customs duties on behalf of the Palestinians, but has withheld the funds since Hamas took power.