The European Union (EU) announced a new three-year financial support package for the Palestinians on Monday, with a total value of up to 1.6 billion euros (approximately $1.8 billion). This announcement was made during the first “high-level dialogue” meeting in Luxembourg between EU foreign ministers and Palestinian Prime Minister Mohammed Mustafa.
EU foreign policy chief Kaja Kallas emphasized the EU’s commitment to increasing support, stating, “We are stepping up our support to the Palestinian people. €1.6 billion until 2027 will help stabilise the West Bank and Gaza.” This financial aid comes as the situation in Gaza remains tense due to Israel’s resumption of military operations following a two-month ceasefire.
In further remarks, Kallas mentioned the importance of this funding in reinforcing the Palestinian Authority’s ability to serve the Palestinian populace in the West Bank and prepare for future governance in Gaza when conditions allow. She reiterated the EU’s condemnation of the blockade of aid into Gaza and insisted there is no military solution to the ongoing conflict.
Mustafa pointed out the necessity for the international community to address the situation in Gaza and the West Bank, highlighting that accountability is essential for lasting peace. He asserted that Israel must be held responsible for the actions taken against the Palestinian people.
Brussels, being the largest international donor to the Palestinians, detailed that the package would consist of 620 million euros ($703.4 million) in grants directed towards the Palestinian Authority. The funds will be contingent upon reforms in various sectors, including fiscal sustainability, democratic governance, and public infrastructure.
In addition to the grants, the package will include 576 million euros ($653.4 million) aimed at economic recovery projects across Gaza, the West Bank, and East Jerusalem. Furthermore, the European Investment Bank will contribute an additional 400 million euros ($453.8 million) in loans.
This new financial support package follows the previous three-year plan worth 1.36 billion euros ($1.5 billion) that covered the period from 2021 to 2024. Despite being a significant aid provider, the EU has encountered challenges in influencing the situation due to differing approaches from its 27 member states regarding the conflict.
