It paints a devastating picture of the impact of the economic sanctions imposed against the Hamas government of the Palestinian Authority (PA) by the United States and the other major powers, including Britain. In so doing, it demonstrates the collusion of the whole of Europe and of the United Nations with Israel’s occupation of the West Bank and Gaza and its brutal suppression of the Palestinians.

The electoral victory of Hamas—branded by the US as a terrorist organisation for its militant opposition to Israel—led, on the insistence of the US and Israel, to the economic boycott and isolation of the PA.

Israel illegally withheld the tax and customs it collects on behalf of the PA, US$60 million a month or approximately 50 percent of the PA’s monthly revenues, while the Quartet, the US, European Union, Russia and the UN, cut off all direct aid to the PA, depriving it of a further 25 percent of its budget.

Most of the PA’s money is spent on the payment of salaries to its employees, the Palestinian public sector, including doctors, teachers and officials. It is also the “financier of last resort” for Palestinian utilities and public institutions, which can no longer pay their creditors as the international banks have withdrawn credit and other facilities in part because they fear anti-terrorism litigation from the US.

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http://wsws.org/articles/2007/mar2007/pale-m21.shtml