The United States and the European Union (E.U.) have offered to give the Palestinian Authority (PA) another $265 million to bail out the PA for the time being. The international community last December pledged $7.7 billion in aid for the PA, but most of the pledges have not been transformed into cash.
The PA has been forced to delay paying out salaries, causing an embarrassing situation for its Prime Minister Salam Fayyad, an economist who has promised to reform the corrupt PA government.