European Union pledges €1.6 billion to Palestinian Authority

Sarhan Basem
Credit: REUTERS/Yves Herman

Brussels (Brussels Morning Newspaper) – The European Union will boost its financial support for the Palestinian Authority with a three-year package estimated to be worth 1.6 billion euros, Dubravka Suica, the European Commissioner responsible for the Middle East, said, Reuters reported.

The commissioner’s comments preceded the first “high-level political dialogue” set to occur on Monday in Luxembourg, involving European Union foreign ministers and senior Palestinian officials like Prime Minister Mohammad Mustafa.

In an interview with Reuters, Dubravka Suica, the European Commissioner for the Mediterranean, expressed that financial assistance would go alongside reforms of the Palestinian Authority.

Can reforms make the PA a credible partner?

“We want them to reform themselves because without reforming, they won’t be strong enough and credible in order to be an interlocutor, not for only for us, but an interlocutor also for Israel,”

Suica said.

Suica further announced that 620 million euros will be allocated for financial support and reform of the PA, 576 million euros for the “resilience and recovery” of the West Bank and Gaza, while 400 million euros will be provided in loans from the European Investment Bank, pending approval from its governing body.

She indicated that the average EU support for the PA reached approximately 400 million euros over the last 12 years.

“We are investing now in a credible manner in the Palestinian Authority,”

Suica said.

How is the EU supporting Gaza’s recovery?

The EU is the largest donor to the Palestinians, with officials expressing hope that the Palestinian Authority, which governs the West Bank, might eventually take charge of Gaza once the conflict between Israel and Hamas militants concludes.

In January 2025, in line with the EU’s ongoing commitment to assist Palestinians and considering recent regional developments, the European Commission announced a € 120 million aid package for Gaza. 

This brings the total EU humanitarian aid to Gaza to over €450 million since 2023 and complements the EU Air Bridge Flights that have transported over 3,800 tonnes of aid.  The EU is actively collaborating with partners on the ground to ensure swift delivery of assistance to those in need.

President Ursula von der Leyen expressed:

“The ceasefire and hostage release agreement offers hope the region desperately needed. But the humanitarian situation remains grim in Gaza. Europe will channel €120 million of aid in 2025, alongside tons of in-kind aid, to keep supporting Palestinians.”

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Sarhan Basem is Brussels Morning's Senior Correspondent to the European Parliament. With a Bachelor's degree in English Literature, Sarhan brings a unique blend of linguistic finesse and analytical prowess to his reporting. Specializing in foreign affairs, human rights, civil liberties, and security issues, he delves deep into the intricacies of global politics to provide insightful commentary and in-depth coverage. Beyond the world of journalism, Sarhan is an avid traveler, exploring new cultures and cuisines, and enjoys unwinding with a good book or indulging in outdoor adventures whenever possible.
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