JERUSALEM, May 7, 2011 (WAFA) – The European Union clarified Saturday that an 85 million euros fund it had announced on Friday to the Palestinian Authority was not intended to replace funds Israel had withheld last week from the PA.

A spokesman for the Office of the European Union Representative in Jerusalem said a report by WAFA English that the EU’s fund came in response to an appeal by Prime Minister Salam Fayyad for urgent financial assistance was not accurate.

“The 85 million euros is part of an agreement reached between the PA and the EU early this year,” said the spokesman.

“This should in no way be tied to Israel’s withholding of Palestinian tax funds,” he said, adding that this money will not anyhow be released before June.

Fayyad had last week appealed for financial assistance to pay salaries to more than 130,000 public employees after Israel stopped release of over $100 million in revenues it had collected in April on behalf of the PA.

While the PA normally pays salaries during the first week of every month, it had already announced that it will be late in paying April salaries because of the Israeli decision. The PA said it expects t o pay salaries next week.

M.A.