Brussels (The Brussels Morning Newspaper) – The EU moves with the disbursement of further emergency financial assistance to the Palestinian Authority.
The European Union pays further short-term emergency financial aid to the Palestinian Authority (PA). It amounts to a whole of €122.5 million including €38.5 million in donations through the PEGASE mechanism to settle salaries and pensions of the civil servants in the West Bank and to assure the provision of essential services, and €84 million via a credit line to the Palestine Monetary Authority, delivered by the European Investment Bank.
How does the mechanism support the Palestinian Authority?
EU assistance benefits address the most pressing financial requirements of the Palestinian Authority and support its substantial and credible reform plan. The disbursement follows the signature of a Letter of Intent by the European Commission and the Palestinian Authority, forming a strategy for managing the critical budgetary and fiscal situation of the Palestinian Authority.
What reforms is the Palestinian Authority committed to with EU aid?
The disbursement is connected to the Palestinian Authority’s commitment to show concrete progress for the agreed prior activities, as set out in the Annex to the Letter of Intent.
The third and last payment of this short-term emergency financial aid is planned by the end of September, subject to a contract on the ‘Comprehensive Programme for Palestinian Recovery and Resilience’. Dialogue with the Palestinian Authority will continue.
What is the EU’s strategy for Palestinian fiscal and budgetary reform?
The European Union is the largest provider of external assistance to the Palestinians, amounting to indicatively €1.36 billion for 2021-2024 under the European Joint Strategy, of which over € 920 million have already been embraced.
How does the EU promote Palestinian resilience and recovery efforts?
In line with the purpose of a negotiated two-state solution, EU efforts seek to promote greater Palestinian control, autonomy, and ability to exercise responsibility to prepare for future statehood. The EU is also funding efforts to strengthen the Palestinian Authority’s transparency and accountability, to reinforce its role and credibility.
The EU/Palestine partnership is established on the Interim Association Agreement on Trade and Cooperation, inscribed in 1997 between the European Community and the Palestine Liberation Organisation, on behalf of the Palestinian Authority. The EU-Palestine Action Plan under the European Neighbourhood Policy was agreed in May 2013, setting the agenda for economic and political collaboration with the EU. The Action Plan was recently extended for an additional three years, until 2025.
