LONDON [MENL] -- The European Union plans to contribute 280 million euros for development of the Gaza Strip.

The European Commission said it would relay 280 million euros to the Palestinians in 2005. An EC statement on Monday said the sum exceeded that planned for contribution by Brussels.

The statement said the EC funding would focus on the Palestinian economy in wake of the Israeli withdrawal from the Gaza Strip. It said a 60 million euro fund would help "revive the Palestinian economy and create institutions capable of addressing the new responsibilities arising following disengagement."

"These efforts are designed to maintain the momentum created by Gaza withdrawal, and ensure that this important event leads on to full implementation of the Roadmap," the statement said.