The Oxfam humanitarian organization Wednesday called on the European Union to end its aid boycott of the Palestinian Authority, saying that an increasing number of Gaza Strip families are facing crushing debt.

"In Gaza one family in 15 owes more than $25,000 - a massive amount in a
society where a school headmaster only earns $9,000 a year," the organization said in a statement.

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An Oxfam survey of 2,500 households in Gaza and the West Bank showed that
average debt per household was $1,750, with a third owing more than $2,500.

"Over 40% of Palestinian families have sold off personal assets,
including jewellery, furniture and personal items, in order to survive," Oxfam said. "Most households owe money to their electricity supplier, grocer and water supplier."

EU foreign ministers are meet in Brussels on June to discuss the situation in the Palestinian territories.

Oxfam International Executive Director Jeremy Hobbs called upon them to end their participation in the international aid boycott, and resume direct funding of the Palestinian Authority.

"The EU has welcomed the National Unity Government," Hobbs said. ?Now it has to restore aid payments to the Palestinian Authority and ensure individual ministries receive funds. This is the only way that security can be restored and Palestinian institutions can work again. If the EU restores aid Oxfam believes this will add pressure on Israel to return the he PA's tax and customs revenues, which it has been withholding and which it must give back.

"These are necessary steps towards improving the humanitarian situation and to focus on building a lasting peace based on international law."

In the study commissioned by Oxfam, The Palestinian Center for Public Opinion asked a random cross-section of 2,500 household heads, 1,500 in the West Bank and 1,000 in Gaza, about their household debts, sale of assets and financial responsibilities now and a year ago. The survey was conducted between May 26th and June 3rd 2007.

"The poorest Palestinians have been hit hardest as funds for hospitals and
schools have run short. Hospitals are running out of drugs and the managersof essential services have cut down their care due to budget cuts," Oxfam said, noting that the Palestinian Authority operates over 1,600 schools and over 400 health centers and hospitals.

According to Oxfam, "Western donors wanted to change some of the policies of the Hamas-led government, but in reality they have punished the Palestinian people."

Oxfam quoted World Bank statistics showing that that Israel tax and customs transfers accounted for $814 million of PA income in 2005, and that international aid provided $349 million of the PA budget that year.

"Israel now owes the Palestinian Authority $700 million in taxes and customs it has collected but not handed over since January 2006," Oxfam said.