NEW YORK, March 1, 2006, (WAFA)- Special Coordinator for Middle East Peace, Alvaro de Soto, urged continuing the support for Palestinian National Authority (PNA), warning of collapsing all hopes of achieving a Palestinian State.... During his brief to the UN Security Council, last night, De Soto revealed that the PNA passes through critical economic situation.... Describing a functioning Authority as an essential building block for a Palestinian State, De Soto, who is also the Secretary-General's Special Representative to the Palestine Liberation Organization (PLO) and the Palestinian Authority, said it was not something that could be turned on and off like a light switch, warning of deterioration in Palestinian basic social and economic services.... Regarding the needs to stabilize the Palestinian Authority's finances, De Soto said that the PNA faces a budget deficit of at least $260 million over the expected lifespan of the caretaker Government, mainly because of Israel's decision to withhold tax and customs revenue transfers of up to $130 million -- money which belonged to Palestinians.... Emphasizing the vital need for a credible political horizon for resolving the conflict, he said peace could not be imposed unilaterally and it could not be achieved durably outside the regional framework of the Middle East peace process.... He appealed to the international community not to punish the Palestinian electorate for its democratic choice as expressed at the ballots.... De Soto mentioned that certain regional countries had in recent weeks engaged in efforts to bring the Arab Peace Initiative back onto the agenda. Indeed, the Quartet had signalled its determination to consult closely with the key regional actors, as well as its own continued commitment to the "Road Map" and its underlying principles -- including non-violence, recognition of Israel's right to exist, and respect for previous agreements.... Regarding the Israeli closures, barrier construction and settlement activity, De Soto said that since August, Israel had increased by about 25 per cent the number of physical obstacles to Palestinian movement within the West Bank, according to the Office for the Coordination of Humanitarian Affairs (OCHA).... He added that there were now 471 such obstacles. The Karni (Al-Montar) crossing, opened following the November Agreement on Movement and Access, had been closed since 22 February. It had also been closed between 15 January and 5 February, with unavoidable consequences for the Palestinian economy.... S.A.S. (16:33 P) (14:33 GMT)