EU disburses first €150 million of financial support to Palestinian Authority

BRUSSELS, Jul 31 (EUROPA PRESS) –

The European Union on Wednesday disbursed the first tranche of 150 million euros of the 400 million euro emergency financial support it has committed to the Palestinian Authority to help it meet its administrative and pension bills.

The grant and loan plan was announced two weeks ago and will be disbursed in three installments between July and September. The aid serves to boost the PA’s reform program and supports the institution in the face of its critical budgetary and fiscal situation, given the Israeli blockade of funds.

This first tranche includes €58 million in grants through the PEGASE facility to pay salaries and pensions of West Bank civil servants. The European Investment Bank will also provide €92 million through a credit line to the Palestinian Monetary Authority.

In a statement, European Commission President Ursula von der Leyen said that a “strong and reformed” Palestinian Authority is “key to the common goal of a two-state solution.” “It is the only way to achieve sustainable peace for both Israelis and Palestinians,” she stressed.

Brussels proposes to create a coordination platform to channel aid to Palestine from autumn 2024 until the end of 2026. The aim is for the multiannual support programme to enable the Palestinian Authority to achieve budgetary balance by 2026 and to ensure its long-term financial sustainability thereafter. The programme will depend on the implementation of its reform programme, in line with the PA’s own strategy.