European Commission provides over €118 million to the Palestinian Authority

The European Commission has adopted a €118.4 million assistance package to support the Palestinian Authority (PA) as part of the annual allocation for Palestine in 2023.

Through the EU’s PEGASE mechanism, the new financial assistance adopted will contribute to the payments of the salaries and pensions of civil servants in the West Bank, the social allowances for vulnerable families through the Cash Transfer Programme in the West Bank and Gaza, the payment for the medical referrals to the East Jerusalem Hospitals and support the administrative and technical capacity of the Palestinian Authority institutions.

President of the European Commission, Ursula von der Leyen, said: “The situation in Gaza and the West Bank, including East Jerusalem, is very worrying. We have already quadrupled our humanitarian assistance to Gaza. After careful review of our funds, we are also announcing much needed assistance to the Palestinian Authority. The EU remains the largest international donor of aid to the Palestinians, and we are already reflecting on a wider mid-term package for next year to contribute to the economic and political stability of Gaza and the West Bank, once conditions allow on the ground, as part of wider international efforts to reinstate a two-state solution.”

Background

The European Union is the biggest provider of external assistance to the Palestinians which amounts to indicatively almost €1.2 billion for 2021-2024 under the European Joint Strategy, of which €809.4 million have already been adopted.

The financial package, which will support the Palestinian Authority to cover payments in 2024, has now been adopted following the review of the EU financial assistance to Palestine announced after the tragic events on 7 October 2023.

This short-term package will complement a more mid-term package foreseen next year with the aim of contributing to lay the ground for economic and political stability of Gaza and the West Bank, including East Jerusalem and Area C, based on the two-state solution. This more substantial package will include a remainder of initially foreseen funds worth €61 million for projects in 2023 which will be presented next year once conditions on the ground allow.

The PEGASE programme aims to contribute to a democratic, accountable, economically viable Palestinian state as well as the fulfilment of social rights. The PEGASE mechanism already foresees a strong system of control of all beneficiaries based on ex-ante and ex-post checks of the beneficiaries. The new programme will take into account the conclusions of the review.