Why is most Palestinians’ economic situation worsening?

The major mediating powers involved in the Middle East have agreed on a European Union plan to provide some aid to the Palestinians, many of whom have been suffering severe economic hardship as a result of the suspension of Western Aid following the victory of Hamas in the Palestinian election. The plan aims to release European Union funds through channels other than the Hamas government which is refusing to recognize Israel. The European Union, the United States, the United Nations and Russia collectively known as the quartet said their plan would provide support for local health services, guarantee fuel supplies and provide the basic needs of poor Palestinians, but they stressed the plan was limited in scope and duration.