The European Commission, through the Temporary International Mechanism (TIM), has started paying social allowances to 40,000 of the neediest Palestinian families.
Each family will receive 270 euros, totaling 10.8 million euros.
"The TIM is helping to meet the most urgent needs of the Palestinian people, and following the Quartet [representatives of the EU, U.S., U.N. and Russia] decision we will be able to do even more," said Commissioner Benita Ferrero-Waldner.
The Middle East Quartet decided last week to support an extension of the TIM for a three-month period and an expansion of its scope.
Ferrero-Waldner called for new donor states to come forward to support the TIM, and for Israel to resume transfers of tax and customs revenue that belong to the Palestinians.
The European Commission is making 105 million euros available for the TIM from the EU’s budget, and member states have so far pledged an additional 77 million euros.
Since the Hamas government came to power in March 2006, most of the Palestinian Authority (P.A.) workers have not been paid their salaries. P.A. workers comprise 70 percent of the entire Palestinian work force, which translates to approximately 165,000 workers.