The European Union announced on Wednesday the disbursement of 150 million euros as part of an emergency aid package totaling 400 million euros for the Palestinian Authority, which is facing serious financial issues. The European Commission clarified that this first payment aims to assist in paying the salaries of employees in the occupied West Bank and to support needy families.
The Commission added in a statement that the remaining amount will be paid in August and September, contingent upon progress in implementing the Palestinian Authority's reform program. The Authority is grappling with a financial crisis that has worsened since the onset of the war in Gaza due to Israel withholding more tax revenues allocated to the Palestinian territories.
The European Union is the main international financial supporter for the Palestinians, providing aid estimated at 1.2 billion euros since 2021. European Commission President Ursula von der Leyen stated that "the European Union is fully committed to supporting the Palestinian Authority during this difficult time," adding that "our emergency aid of 400 million euros supports a vital reform program and lays the groundwork for the reconstruction of Gaza."
The European Commission confirmed that it will present a law in early September for a "comprehensive recovery program for the Palestinians," emphasizing that this plan aims to ensure the financial balance of the Palestinian Authority by 2026, with future financial installments linked to "progress in implementing reform phases." In addition to the destruction of a large part of the Gaza Strip, the war between Israel and Hamas since October 7 has had repercussions on the public finances of the Palestinian Authority and the economy of the West Bank.
