STOCKHOLM, August 13, 2009 (WAFA)- 'The Palestinian Authority is in a very difficult economic situation. The support of SEK 50 million will be used to pay for wages and pensions in civilian sectors of the Palestinian Authority. A functioning Palestinian Authority is a prerequisite for a peaceful and sustainable solution to the Israeli-Palestinian conflict,' said Swedish Minister for International Development Cooperation Gunilla Carlsson.

Sweden's direct support of SEK 50 million will be disbursed via PEGASE, the EU mechanism established for channelling support to the Palestinian Authority. The context in which the decision should be seen is that the Ad Hoc Liaison Committee (AHLC), the main body for coordination of international support to the Palestinians, has emphasised the importance of the international community giving increased direct support to the Palestinian Authority to enable Prime Minister Fayyad's government to continue to implement the Palestinian Reform and Development Plan. As one of the largest donors to the Palestinians, Sweden is represented on the AHLC. Total Swedish support this year is expected to exceed SEK 700 million.