On 14th June, the European Commission has approved a new bilateral allocation to Palestine worth €224.8 million. This new assistance package will support the Palestinian Authority and crucial projects in the occupied Palestinian territory. This package complements previous contributions, such as €92 million to support UNRWA, bringing the total EU assistance to the Palestinians in 2021 to €317 million. This does not include a further €25 million in humanitarian funding announced in May.
This package includes €145.35 million to support the Palestinian Authority in the payments of the salaries and pensions of civil servants, the social allowances to vulnerable families, the referrals to the East Jerusalem Hospitals, and the purchase of COVID-19 vaccines authorised by the European Medicines Agency (EMA). In the framework on the EU’s Food and Resilience Facility in support of our Southern Neighbourhood partners, €10 million will be added to the allowances component, which will therefore amount to € 50 million in total. This additional support will aim to address the consequences of rising prices of food and commodities in Palestine, thus helping mitigate the impact of Russia’s war against Ukraine. As part of the €145.35 million package, €13 million is allocated for referrals to the East Jerusalem hospitals.
A specific programme of EUR 36 million for the period 2021-2023 will also aim to enhance the living conditions in East Jerusalem in order to respond to the continued deterioration of socio-political and economic trends.
With a view to fostering sustainable economic development in occupied Palestinian territory and reducing aide dependency, €30.5 million are allocated to private sector development. This support will target key Palestinian economic sectors that have the potential to stimulate inclusive economic growth and will enhance digitalisation, diversification of trade and innovation, thus boosting the economy. It will also contribute to the economic recovery efforts in Gaza, notably supporting micro, small and medium-sized enterprises, as well as reconstructing and developing damaged economic infrastructure.
Moreover, in this package the EU has earmarked €10 million for two major infrastructure projects in Gaza that are part of the EU’s flagship projects under the EU’s Economic and Investment plan for the Southern Neighbourhood: the gas for Gaza pipeline and the Gaza central desalination plant related works.
Finally and in line with EU commitment towards gender related issues, €3 million will promote gender responsive policies and laws in the occupied Palestinian territory.
The EU remains a steady supporter and one of the main donors of Palestinians. It foresees to provide up to €1.152 billion in financial support from 2021 to 2024. The ultimate objectives of EU financial support to the Palestinians are to establish accountable institutions for a future Palestinian State and supporting the emergence of a self-sustaining economy.