This in-depth essay lays out exactly how EU money goes to the Palestinian Authority -- and what it buys.
From the article:
The man that monitors the Palestinians for [EU Commissioner Chris] Patten is himself a Palestinian. He comes from the same clan and carries the same last name as Arafat's long-time finance minister. He had even been destined for a political career under Arafat. Until Monday evening of this week the IMF man Nashashibi was going to become Arafat's new Finance Minister. Then the wind changed and Nashashibi's predecessor at the IMF is now first-in-line for the office. Arafat's financial advisor Fuad Shubaki, the man who bought the Karine-A, is proud to call IMF deputy Nashashibi "a friend".
Nothing like a little impartial oversight, I always say. Go read the rest. It should interest you.