"We are well aware of the urgency of the situation in the Palestinian territories," EU External Affairs Commissioner Benita Ferrero-Waldner told a press briefing after the EU foreign ministers' meeting, held here on Monday.

Ferrero-Waldner said she hoped an aid mechanism proposed last week by the quartet of Middle East peace negotiators that would bypass the Hamas-led government could be put in place by June.

"We have to get the parameters right and then we have to get the donors and the partners to accept what we will set up."

The Palestinian Authority needs about 150 million euros a month to pay for salaries and other administrative costs. About two thirds was covered by foreign donations until the EU and the United States froze aid to push Hamas to recognize Israel, renounce violence and accept past peace accords.

In a conclusion document issued by the foreign ministers, the EU urged Israel to resume transfer taxes and customs revenues it collected monthly on behalf of the Palestinians.

Ferrero-Waldner also said she hoped a donors' meeting could be held next week once the mechanism had been mapped out and that other donors, including Israel and Arab states, would contribute.

"Now I think it is crucial that Israel also resume transfers of tax and customs revenues, which are essential to prevent a crisis in the Palestinian territories," she said.