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Typical West Bank street: Arab and Western donors are not making good on aid pledges as their own economies suffer (Photo: michaelramallah)

EU meeting: Financial crisis hampers Palestinian state-building

The global economic slowdown has created a $1 billion hole in the budget of the Palestinian Authority (PA), setting back the prospect of a two-state solution, aid donors said after a meeting in the EU capital on Wednesday (21 March).

The event - a regular Spring meeting of the so-called Ad-Hoc Liaison Committee on Palestine - in its concluding document used forceful language to describe the problem.

It said the PA in early 2012 "experienced a severe fiscal crisis, which threatens...

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Author Bio

Andrew Rettman is EUobserver's foreign editor, writing about foreign and security issues since 2005. He is Polish, but grew up in the UK, and lives in Brussels. He has also written for The Guardian, The Times of London, and Intelligence Online.

Typical West Bank street: Arab and Western donors are not making good on aid pledges as their own economies suffer (Photo: michaelramallah)

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Author Bio

Andrew Rettman is EUobserver's foreign editor, writing about foreign and security issues since 2005. He is Polish, but grew up in the UK, and lives in Brussels. He has also written for The Guardian, The Times of London, and Intelligence Online.

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