The European Union has unveiled a comprehensive three-year financial support package for the Palestinians, amounting to 1.6 billion euros (approximately $1.8 billion). This announcement coincided with a significant meeting between EU foreign ministers and Palestinian Prime Minister Mohammed Mustafa in Luxembourg, marking the initiation of a “high-level dialogue” between the two parties.
EU foreign policy chief Kaja Kallas emphasized the urgency of the assistance during the announcement. “We are stepping up our support to the Palestinian people. This funding until 2027 aims to stabilize the West Bank and Gaza,” Kallas stated. The bloc aims to strengthen the Palestinian Authority, particularly in light of the renewed conflict in Gaza following a two-month ceasefire that was recently broken by Israel.
Kallas described the new financial commitment as part of a broader strategy to bolster essential infrastructure, facilitate humanitarian aid, and support refugees in the region. She commented on the importance of this funding in enhancing the Palestinian Authority’s capabilities to address the needs of its people and prepare for future governance in Gaza once conditions allow.
Additionally, Kallas condemned the ongoing blockade of aid into Gaza and reiterated the EU’s position that there is no military solution to the ongoing conflict. She noted her recommendation for imposing further sanctions on “extremist” Israeli settlers in the West Bank, though she acknowledged the lack of consensus among EU member states regarding this approach.
In his remarks, Prime Minister Mustafa urged the international community to confront what he termed a “moment of truth” regarding the dire situation in Gaza and the West Bank. He stressed the necessity for accountability, asserting, “There can be no lasting peace without accountability. Israel must be held responsible for the crimes committed.”
Details of the new financing package reveal that Brussels, which serves as the largest international donor to the Palestinians, will allocate 620 million euros ($703.4 million) in grants directly to the Palestinian Authority. The funding is structured around critical reforms aimed at promoting fiscal sustainability, fostering democratic governance, and improving private sector development along with public infrastructure and services.
The remaining 576 million euros ($653.4 million) will be designated for projects that aim to foster economic recovery in Gaza, the West Bank, and East Jerusalem. Additionally, the European Investment Bank is expected to contribute a further 400 million euros ($453.8 million) in loans as part of the financial support strategy.
This latest support package follows a previous commitment made by the EU from 2021 to 2024, which was valued at 1.36 billion euros ($1.5 billion). Despite being a significant contributor to aid in the region, the EU has encountered challenges in influencing the ongoing crisis, hampered by often divergent views among its 27 member countries regarding the conflict.
