EU to aid Abbas in plan to avert PA collapse

The European Union has frozen direct aid to the Hamas-led Authority, but the April 27 document says the commission intends to provide assistance to bolster Abbas's office in anticipation that it will play the role of go-between.

"With current or even substantially increased levels of funding, the EU will not be able to stave off a crisis but might be able to avert or delay a collapse," the document said.

Western diplomats say the Bush administration has moved in recent days to scuttle the European proposal on the ground that letting it go ahead would take pressure off Hamas to renounce violence, recognise Israel and abide by interim peace deals.

But they said the Bush administration has agreed to back an expansion of Abbas's elite presidential guard. The EU would provide the funds for training and equipment.

Hamas officials and some Western diplomats say Washington's goal is to shore up Abbas while making it impossible for the Palestinian Authority to function.

Like proposals floated by Britain and France, the European Commission said donors could establish a pool of funds in coordination with the United Nations, the World Bank or the International Monetary Fund.

The money would be funneled to specific sectors like health and education, bypassing the Hamas-led Authority.