EU Gives 150 Million Euros in Aid to Palestinian Authority

Brussels – The European Union has announced the release of an initial 150 million euros as part of a broader emergency aid package totaling 400 million euros for the Palestinian Authority, which is grappling with significant budgetary challenges. This first tranche aims to assist in paying civil servant salaries in the West Bank and provide support to vulnerable families. The remaining funds are set to be disbursed in August and September, contingent upon the Palestinian Authority's progress in implementing necessary reforms. The financial crisis faced by the Palestinian Authority has intensified since the onset of the war in Gaza, exacerbated by Israel's increased retention of tax revenues meant for the Palestinian territories. The EU has been a crucial financial backer of the Palestinians, contributing approximately 1.2 billion euros in aid since 2021. The current emergency aid is part of ongoing efforts to stabilize the region and support the Palestinian administration. European Commission President Ursula von der Leyen emphasized the importance of a reformed Palestinian Authority, stating that it is essential for achieving a two-state solution and lasting peace for both Israelis and Palestinians. The aid is also seen as a step towards the recovery and reconstruction of Gaza, which has been severely impacted by the ongoing conflict. In early September, the European Commission plans to propose a comprehensive recovery program aimed at helping the Palestinian Authority achieve budget balance by 2026 and ensure long-term financial stability.