EU Confirms €82 Million Support for Palestinian Authority, No New Pledges

The European Commission has reaffirmed its commitment to the Palestinian Authority by confirming a financial contribution of €82 million. This amount, already pledged by four EU member states—Germany, Luxembourg, Slovenia, and Spain—was announced during the first meeting of the Palestine Donor Group held in Brussels. Despite efforts to attract support from non-EU countries, the meeting did not yield any additional financial commitments.

The funding will be distributed through the Palestinian-European Socio-Economic Management and Assistance Mechanism, known as “Pegase.” This mechanism is designed to link European financial support to specific reforms and ensure transparency regarding the use of funds.

Challenges in Securing Additional Support

The Palestine Donor Group was established to engage EU members and non-EU nations in efforts to finance economic recovery and stabilization in the West Bank. Over 60 delegations participated in this week’s meeting, according to Dubravka Šuica, the EU Commissioner for the Mediterranean. Despite the turnout, there were no new pledges, although some countries expressed interest in contributing through the Pegase mechanism.

“Switzerland, New Zealand, Norway, and Türkiye are looking forward to their pledges to use this mechanism, which ensures that funds are allocated appropriately,” Šuica stated during a press conference after the meeting.

Addressing concerns regarding financial aid, Šuica emphasized that “not a single euro of European money has been spent on these contested payments” in response to accusations that the Palestinian Authority financially rewards families of Palestinians killed or imprisoned by Israel, a practice often referred to as “pay for slay.”

The total contributions through the Pegase mechanism this year have exceeded €88 million, factoring in earlier pledges from Finland, Ireland, Italy, and Spain. Since 1994, the European Commission estimates that EU support for the Palestinian Authority has reached nearly €30 billion.

Political Dynamics and Accountability

During the meeting, Palestinian Prime Minister Mohammad Mustafa condemned the Israeli occupation and emphasized the need for Israel to release tax revenues that it collects on behalf of the Palestinian Authority. These funds have not been transferred since April 2023, creating a significant fiscal crisis for the Palestinian government.

“No government can sustain reforms if it is denied its own revenues. The current fiscal crisis is politically motivated,” Mustafa asserted. He also called for accountability regarding the damages inflicted on the Gaza Strip, stating, “Israel should be held responsible for what happened, and they should contribute significantly, if not fully, to repairing the damage and contributing to the reconstruction effort.”

While Šuica did not directly address Mustafa’s comments on accountability, she acknowledged the US-led UN Security Council’s resolution regarding the Gaza peace plan as an important step toward advancing peace. The EU’s overarching goal remains the establishment of a two-state solution for Israel and Palestine, although it is still uncertain if the EU will have representation in the proposed Board of Peace.

As discussions continue, the long-standing challenges surrounding funding, accountability, and political dynamics remain at the forefront of international efforts to stabilize the region.