I am disappointed that the EU decided to resume funding to the PA - especially now. This AP dispatch doesn't get into much detail about Patten's ostensible reasons for rejecting Israel's detailed allegations about the PA use of EU funds. But it seems to come down to realpolitik:

He also warned that the committee risked undermining the EU's credibility if it continued to block assistance that had been approved by the 15 member states, as well as the full Parliament, last year.

"If we turn our back on this, any words about Europe having a part in the Mideast peace process are pretty worthless," he said.

Patten's priority is getting the EU to have influence.

Arutz-7 has an account of remarks made today by the EU's Middle East mediator Miguel Moritinos which is almost too preposterous to believe. Moritinos asserts that the Palestinians are no longer demanding the "right of return", blamed Israeli settlements for the current violence, and excused Arafat's intrasigence as deference to the "Arab street".