EU appears to backpedal on freezing of Palestinian aid payments

Earlier announcement by Oliver Varhelyi had prompted surprise from member states including Ireland and Spain

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The EU has been plunged into a diplomatic row after an announcement that it was to suspend all payments" to Palestinians as a result of Hamas's attacks on Israel led to clashes with several member states including Ireland, Spain and the Netherlands.

After six hours scrambling for an explanation, the European Commission appeared to backpedal on an announcement made by the commissioner for neighbourhood and enlargement, Oliver Varhelyi, saying: There will be no suspension of payments." But it muddied the waters by saying there were no payments foreseen".