BRUSSELS/BERLIN, Oct 10 (Reuters) - The European Union backtracked in disarray on Monday on an announcement that aid to Palestinians had been suspended in response to the attack on Israel by Hamas after EU countries complained the bloc's executive had overstepped the mark.
The confusion began after Oliver Varhelyi, the top official for relations with the EU's neighbours, said the European Commission was putting all its development aid for Palestinians, worth 691 million euros ($729 million), under review.
In a post on social media site X, Varhelyi - a Hungarian who is European Commissioner for Neighbourhood and Enlargement - also said all payments were "immediately suspended".
Varhelyi was nominated for his post by Hungarian Prime Minister Viktor Orban, a staunch ally of Israeli Prime Minister Benjamin Netanyahu.
The announcement prompted consternation among multiple governments, who had warned against cutting off aid to the detriment of Palestinian civilians and questioned whether the Commission had the authority to take such a decision.
The move also came as a surprise as officials had said earlier in the day that aid to Palestinians would be discussed at an emergency meeting of EU foreign ministers on Tuesday.
Spain, Portugal, Luxembourg and Ireland publicly voiced alarm while other countries did so behind the scenes, diplomats said.
"Our understanding is that there is no legal basis for a unilateral decision of this kind by an individual Commissioner and we do not support a suspension of aid," a spokesperson for Ireland's foreign ministry said.
The Commission declined to explain the discrepancy. But it clarified that humanitarian aid - which is separate to funds for development - would continue.
It said it was carrying out the review to "ensure that no EU funding indirectly enables any terrorist organization to carry out attacks against Israel".
Hamas militants killed some 900 Israelis and abducted dozens in the deadliest such incursion since the Yom Kippur war 50 years ago, prompting Israel to retaliate with its heaviest ever bombardment of Gaza, which has killed more than 680 people.
Photo from Reuters
