BRUSSELS September 20, 2005 The European Commission (EC) announced that its allocation to the Palestinians in 2005 will be at around €280 million.

On the eve of the Quartet meeting (EU, US, UN and Russia) in New York on September 20, the European Commission said this package includes a substantial contribution to tackling the priorities identified by Quartet Special Envoy James Wolfensohn in the aftermath of the Israelis' withdrawal from Gaza.

"A special €60 million allocation will help revive the Palestinian economy and create institutions capable of addressing the new responsibilities arising following disengagement", said a statement by the EC "these efforts are designed to maintain the momentum created by Gaza withdrawal, and ensure that this important event leads on to full implementation of the Road Map."

In New York for the Quartet meeting, the Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner commented "only Israel and Palestine can make peace -- but Europe is playing its part in the international Quartet to create the environment in which peace can take root".

She added "our substantial assistance package will make an important contribution to achieving the objectives James Wolfensohn (the Quartet's Envoy to the Middle East peace proces) has highlighted. We are taking very practical action to regenerate Gaza, and help prepare the Palestinians for statehood. Having led the way in support for reform efforts in the Palestinian Authority, we are now helping to lay the foundations for a viable Palestinian economy".

The EC it is ready to facilitate and contribute to construction of the sea port, start rehabilitation of the airport including the construction of a cargo terminal, already providing support to the Palestinian customs authorities, and is ready to contribute to a third country presence at the border, if all parties agree.

To relieve poverty in the Palestinian territories, it will be essential to restore growth. The EU has provided extensive support for Small and Medium-sized Enterprises and private-sector development. Work is underway with the European Investment Bank to identify further areas for collaboration.

The EU has also increased the quotas for Palestinian agricultural products to make possible an increase in exports.

Taking the contributions of the Commission and the EU member states together, the European Union provides around €500 million each year to promote stability, economic regeneration and reform.

A.D. (13:36 P) (10:36 GMT)