Brussels (The Brussels Morning Newspaper) – The EU disburses €150 million of a €400 million emergency aid package to the Palestinian Authority, supporting financial needs, reforms, and recovery efforts for sustainable peace.
Why Did the EU Provide Financial Backing to the Palestinian Authority?
The European Union has paid the first tranche of short-term emergency financial backing to the Palestinian Authority. As reported on 19 July, EU assistance helps manage the most pressing financial needs of the Palestinian Authority and supports its substantial and credible reform schedule. The disbursement tracks the signature of a Letter of Intent by the European Commission and the Palestinian Authority, forming a strategy for addressing the crucial budgetary and fiscal circumstances of the Palestinian Authority.
What Is the Purpose of the EU’s Emergency Financial Assistance?
European Commission President Ursula von der Leyen stated: “A strong and reformed Palestinian Authority is key to our common goal of a two-state solution. This is the only way to bring sustainable peace for both Israelis and Palestinians. The EU is fully committed to supporting the Palestinian Authority in these difficult times. Our €400 million emergency assistance supports a substantial reform agenda and paves the way for the recovery and reconstruction of Gaza.”
How Much Financial Support Has the EU Disbursed So Far?
As a portion of the €400 million EU short-term emergency financial backing, the first instalment of €150 million has been freed today. This includes €58 million in assistance through the PEGASE mechanism to disburse salaries and pensions of the civil servants in the West Bank and back vulnerable families. The European Investment Bank is delivering €92 million via a credit line to the Palestine Monetary Authority.
Subsequent amounts of this short-term emergency financial backing should follow in August and September, subject to improvement in the implementation of the reform agenda of the Palestinian Authority.
In early September, the EU Commission will submit a legislative proposal for a Comprehensive Programme for Palestinian Recovery and Resilience, which will be prepared to help the Palestinian Authority reach budgetary equilibrium by 2026 and assure long-term financial sustainability. Jumping towards the end of the year, all disbursements under this long-term ambition will be subject to progress in the undertaking of the agreed-upon reform milestones.
The European Union is the largest provider of external assistance to the Palestinians, amounting to indicatively nearly €1.2 billion for 2021-2024 under the European Joint Strategy, of which over €890 million have already been assumed.
