Palestinian President Mahmoud Abbas has warned of an "explosion of anger" among Palestinians if international donors did not move fast to restore aid cut off in recent weeks.
President Mahmoud Abbas delivering his speech to European Parliament deputies in Strasbourg
International donors, including the European Union and the United States, have suspended aid to the Palestinian Authority because of the Hamas-led government's failure to renounce violence and recognise Israel since coming to power in March.
The EU, the Palestinians' largest donor, has been charged with coming up with a way of restarting aid for the most urgent needs while bypassing Hamas officials.
But the EU acknowledges it could take weeks to get a new aid mechanism working.
"Life will be frozen, and there will be an explosion of anger, and this would lead to a chaotic situation of which we cannot forsee the results," Mr Abbas told a news conference after a speech to the European Parliament in the French city of Strasbourg.
"I would like to adopt the mechanism as quickly as possible so the crisis does not take place," he added.
"We are waiting, but we hope that we do not have to wait too long. We are in a race against time and therefore we have to be swift in the steps we undertake in order to avoid this catastrophe," he said.
EU foreign ministers promised yesterday to get the aid mechanism running as soon as possible but said Israeli support was crucial, and it appeared the United States would not take part.
They acknowledged concern about the deterioration in the humanitarian, economic and financial situation in Gaza and the occupied West Bank following cutoffs in EU and US aid.
EU External Affairs Commissioner Benita Ferrero-Waldner said she hoped an aid mechanism proposed last week by the quartet of Middle East peace negotiators could be put in place by June but conceded a number of technical obstacles existed.