Diplomats may have a reputation for greyness, obfuscation, even hypocrisy, but few have found themselves compared to a serial killer, let alone one who devours human flesh.

That honour befell Laars Faaborg-Andersen, the European Union’s ambassador to Israel, last week when Jewish settlers launched a social media campaign casting him as Hannibal Lecter, the terrifying character from the film Silence of the Lambs.

An image of the Danish diplomat wearing Lecter’s prison face-mask was supposed to suggest that Europe needs similar muzzling.

The settlers’ grievance relates to European aid, which has provided temporary shelter to Palestinian Bedouin families after the Israeli army demolished their homes in the occupied territories near Jerusalem. The emergency housing has helped them remain on land coveted by Israel and the settlers.

European officials, outraged by the Lecter comparison, have reminded Tel Aviv that, were it to abide by international law, Israel – not the EU – would be taking responsibility for these families’ welfare.

While Europe may think of itself as part of an enlightened West, using aid to defend Palestinians’ rights, the reality is less reassuring. The aid may actually be making things significantly worse.

Shir Hever, an Israeli economist who has spent years piecing together the murky economics of the occupation, recently published a report that makes shocking reading.

Like others, he believes international aid has allowed Israel to avoid footing the bill for its decades-old occuption. But he goes further.

His astonishing conclusion – one that may surprise Israel’s settlers – is that at least 78 per cent of humanitarian aid intended for Palestinians ends up in Israel’s coffers.

The sums involved are huge. The Palestinians under occupation are among the most aid-dependent in the world, receiving more than $2bn from the international community a year. According to Hever, donors could be directly subsidising up to a third of the occupation’s costs.

Other forms of Israeli profiteering have been identified in previous studies.

In 2013 the World Bank very conservatively estimated that the Palestinians lose at least $3.4bn a year in resources plundered by Israel.

Further, Israel’s refusal to make peace with the Palestinians, and as a consequence the rest of the region, is used to justify Washington’s annual $3bn in military aid.

Israel also uses the occupied territories as laboratories for testing weapons and surveillance systems on Palestinians – and then exports its expertise. Israel’s military and cyber industries are hugely profitable, generating many billions of dollars of income each year.

A survey published last week found tiny Israel to be the eighth most powerful country in the world.

But whereas these income streams are a recognisable, if troubling, windfall from Israel’s occupation, western humanitarian aid to the Palestinians is clearly intended for the victims, not the victors.

So how is Israel creaming off s

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