The Decision has two components. For the first, €60 million will be allocated to the PEGASE mechanism, which supports the Palestinian National Development Plan by helping the PA to finance its budget deficit and implement its reform agenda, meet its obligations towards civil employees, pensioners and most vulnerable citizens, and maintain the functioning of the administration and the provision of essential public services to the population. This amount will contribute to the Palestinian Authority’s payments of salaries and pensions for the first three months of 2013.

The Second component allocates an initial amount of €40 million to UNWRA’s 2013 regular budget (General Fund) in order to support the education, health, relief and social services programmes which UNWRA is responsible for providing for Palestine refugees in West Bank, Gaza, Jordan, Syria and Lebanon.

High Representative/Vice/President Catherine Ashton said: “The European Union is again doing its utmost to underpin the ability of the PA and UNRWA to deliver essential services to the Palestinian people without interruption. We are committed to continuing our support while urging other donors to follow suit. This year we are also earmarking a specific allocation for the Jerash refugee camp in Jordan, which is home to some of the most vulnerable Palestinian refugees in the Middle East.”

EU Commissioner for Enlargement and European Neighbourhood Policy Štefan Füle, announcing the adoption of the package, said: “The Palestinian Authority has particular problems in obtaining donor funds early in the year. The EU is aware of this and, as a reliable donor, has taken steps to alleviate the problem. These funds for both the PA and UNWRA for early 2013 are vital for ensuring that there is no interruption in the provision of the basic health and education services which the Palestinian people need”.

In addition to the two components financed from the 2013 budget, a further amount of €2 million is allocated from 2012 funds to rebuild shelters for around 100 of the poorest Palestinian refugee families in Jordan’s Jerash Refugee Camp.

The rebels, fighting to topple President Bashar Assad, took full control of Yarmouk camp on Monday, according to rebel sources while Syrian military have surrounded the camp.

There were no Syrian government troops in the camp and most of the fighting was between rebels and PFLP-GC gunmen, residents said, according to Reuters.

The group is led by Ahmed Jibril, Assad’s longtime ally. Many PFLP-GC fighters defected to the rebel side and their leader Ahmed Jibril left the camp three days ago to the city of Tartous, according to media reports.

The offensive in the Palestinian refugee camp of Yarmouk in southern Damascus is aimed at driving the pro-government Palestinian gunmen out of the camp.

On Monday, Syrian Foreign Minister Walid al-Muallem said the clashes were triggered by the al Qaeda associated Jabhat al-Nusra group, which was labeled by the US as a terrorist organisation last week.

Meanwhile, many residents on Monday fled the area to Lebnanon, according to the UNWRA.

“As the Syria conflict and its impact on civilians continue to escalate, UNRWA is exerting all efforts to respond to the humanitarian needs of Palestine refugees. Over the past several days, Syrians and the over 150,000 Palestine refugee resident in Yarmouk, a suburb of Damascus, have experienced particularly intense armed engagements involving the use of heavy weapons and aircraft,” UNRWA warned.

“Palestine refugees are also fleeing beyond Damascus. Although the scale and direction of this movement cannot be precisely determined, some have made their way to Lebanon. Initial reports indicate that well over 2,000 people have attempted or are attempting to flee the country.”

The opposition says more than 40,000 people have been killed since the Syrian uprising began in March last year.