The EU will not let Palestinians down, foreign policy chief Javier Solana said, expressing hope that a special aid fund that would bypass Hamas would be in place by early next month.
'The EU continues to be the most important donor. We have not lessened support to the Palestinian people,' Solana told a joint news conference with Palestinian Authority president Mahmud Abbas in the West Bank town of Ramallah.
'The Palestinian people can be assured that the EU will not let them down and we will continue to support them as much as we can. The amount of money which will be spent in the year 2006 will be more than that spent in 2005.'
The European Union -- the biggest aid donor to the Palestinians -- and the United States both suspended funding after militant Islamic group Hamas won January elections, while Israel has also blocked the transfer of revenues.
To avoid Palestinian financial meltdown, however, the EU, Russia, UN and US are working on setting up a World Bank fund to channel money to Palestinians without it passing through the Hamas-led government.
Solana said talks were still underway to set up humanitarian aid but expressed hope that a mechanism could be in place by early July.
'We are working on a mechanism to put the money in a context of humanitarian aid in broader context and to get as many donors in the same mechanism,' Solana said, hoping that the matter would be finalised in a meeting of the quartet.
He said he hoped the matter would be finalised in a meeting of the quartet and that it 'will be put in place by the beginning of next month' but that 'in the meantime, money will continue to be coming'.
Solana earlier held talks with Israeli Prime Minister Ehud Olmert in Jerusalem, where he was to meet Foreign Minister Tzipi Livni later Monday.