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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Jamaica declares emergency in capital after attacks 23 May 2010 UPDATE 1-'Shrek' sequel underperforms at box office 23 May 2010 Obama tells military: prepare for North Korea aggression 2:05am EDT Duchess of York apologizes after tabloid sting | Video 11:16am EDT Shares mostly lower on euro worries | Video 11:20am EDT Australia expels Israeli diplomat over Dubai hit 6:43am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 BP hopes for oil well "top kill" success | Video 11:12am EDT WRAPUP 6-Two Koreas snarl at each other, tensions rise 7:20am EDT China holds door open a crack to U.S. on yuan | Video 7:53am EDT Jamaica declares emergency in capital after attacks 23 May 2010 Obama tells military: prepare for North Korea aggression 2:05am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 U.S. drops criminal probe of AIG executives 22 May 2010 Australia expels Israeli diplomat over Dubai hit 6:43am EDT Study finds big decrease in global child mortality 11:20am EDT China holds door open a crack to U.S. on yuan | Video 7:53am EDT IBM to buy AT&T's Sterling Commerce for $1.4 billion 11:20am EDT UK doctor at heart of vaccine row banned from practice 11:32am EDT Shares mostly lower on euro worries | Video 11:20am EDT Analysis Terrorism could be threat to World Cup The World Cup could be vulnerable to a terrorist attack, despite repeated South African assurances that the tournament is safe and the discovery of what looks like a half-baked plot hatched in Iraq. Full Article After years of doubt, South Africa is ready Profile of host nation South Africa EU aid to Palestinians may shrink if talks fail JERUSALEM Mon May 24, 2010 8:53am EDT Related News Palestinians' Abbas swings behind boycott campaign Sat, May 22 2010 Israel weighs new steps for U.S.-backed peace talks Thu, May 20 2010 U.S. envoy and Abbas discuss final-status issues Wed, May 19 2010 Fayyad causes Fatah headache in West Bank Mon, May 17 2010 Obama: Israel, Palestinians to be held accountable Tue, May 11 2010 JERUSALEM (Reuters) - The European Union could rethink the future size of its 300 million euro ($370 million) aid budget for Palestinians if no progress is made toward peace soon, EU diplomats said Monday. World The aid is supposed to prepare the Palestinians for a peace treaty with Israel that will give them their own state, but "if that isn't coming then I can see a number of questions," said Christian Berger, the EU's representative in Jerusalem. The annual assistance given to the Palestinians over the past 16 years represents the EU's highest per capita foreign aid program. The current seven-year budget, part of which funds United Nations support projects, is locked in until 2013. A delegation from the European Parliament is visiting Israel and the Palestinian territories this week and would certainly be asking "if at the end of the day we don't have a state, then what are we doing with the money," Berger added. EU Ambassador to Israel Andrew Standley said discussions on the next seven-year budget would start soon and focus on how best to spend the money. There was a debate about whether it should be spent mostly on reducing poverty or more should be devoted to projects that advanced EU geopolitical goals, he said. After 16 months without negotiations of any kind, Israel and the Palestinians began indirect talks this month on a peace treaty via United States mediator George Mitchell. "If there's a breakthrough then I guess there's a likelihood that our support will be increased," Berger told reporters at a briefing of EU delegation heads. A two-year plan by Western-backed Palestinian Prime Minister Salam Fayyad to build the institutions of a state was well on track, Berger said. The Palestinian Authority was "performing better than some states which are states already." About 71 million euros of the total 2010 aid package is going to support the Fayyad plan, which is supposed to be complete by August 2011. The visiting EU parliamentarians know Fayyad will be seeking more money later this year to cover a shortfall. Israel is concerned that if peace talks do not result in a treaty to resolve the 62-year-old conflict, the Palestinian leadership might declare statehood unilaterally, with the hope of support from the 27-member EU. The EU diplomats said they believed seven European countries that are now EU members had already recognized a Palestinian state before they joined the EU and currently hosted Palestinian embassies in their capitals. (Reporting by Douglas Hamilton; editing by David Stamp) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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