The European Commission has confirmed an €82 million contribution to the Palestinian Authority, following the inaugural meeting of the Palestine Donor Group in Brussels. This funding, however, relies on pledges already made by four EU member states – Germany, Luxembourg, Slovenia, and Spain – and the conference failed to secure any new financial commitments from other nations despite efforts to broaden participation.
The financial aid will be distributed through “Pegase”, a mechanism designed to link European funding to Palestinian reforms and ensure transparency in how the money is used. The Palestine Donor Group was established by the Commission to foster collaboration between EU members and non-EU countries in supporting economic recovery and stabilization in the West Bank.
EU Funding for the Palestinian Authority Faces Challenges
Over 60 delegations from around the world attended the meeting, according to EU Commissioner for Mediterranean Dubravka Šuica. However, despite expressed interest in the Pegase mechanism, no concrete pledges of new funding were made. Šuica noted that Switzerland, New Zealand, Norway, and Türkiye are considering utilizing the mechanism for future contributions, emphasizing its control and accountability features.
Concerns regarding the Palestinian Authority’s practice of providing payments to the families of those killed or imprisoned by Israel – often referred to as “pay for slay” by Israeli authorities – were addressed during the press conference. Commissioner Šuica stated unequivocally that “not a single euro of European money has been spent on these contested payments.”
Including earlier contributions from Finland, Ireland, Italy, and Spain, the total pledged through Pegase this year exceeds €88 million. Since 1994, the EU has provided nearly €30 billion in support to the Palestinian Authority, demonstrating a long-term commitment to the region. The European External Action Service provides further details on EU-Palestine relations.
Demands for Accountability and Revenue Release
Palestinian Prime Minister Mohammad Mustafa, co-chairing the meeting, strongly condemned Israel’s occupation and actions against the Palestinian government. He underscored the critical need for Israel to release tax revenues collected on behalf of the Palestinian Authority, which have been withheld since April 2024.
“No government can sustain reforms if it is denied its own revenues,” Mustafa stated. “The current fiscal crisis is politically motivated. Israel’s withholding of Palestinian clearance revenues threatens salaries, service continuity, and stability in both Gaza and in the West Bank.”
Mustafa also called for Israel to be held accountable for war damages in the Gaza Strip, suggesting a significant financial contribution towards reconstruction efforts. Commissioner Šuica refrained from commenting on this specific demand when questioned by Euronews.
Meanwhile, Commissioner Šuica welcomed the recent US-led UN Security Council resolution regarding a Gaza peace plan, describing it as a “major step in advancing peace.” The EU’s position on securing a seat on the proposed Board of Peace remains unclear.
Implications for Regional Stability and Future Funding
The lack of new pledges from non-EU countries raises questions about the broader international commitment to supporting the Palestinian Authority. The continued withholding of tax revenues by Israel further exacerbates the financial challenges facing the Palestinian government and hinders its ability to implement necessary reforms. The situation highlights the complex interplay between political considerations and humanitarian aid in the region.
The EU’s long-term objective remains a two-state solution for Israel and Palestine, a goal that requires sustained international cooperation and a commitment to addressing the underlying causes of the conflict. The success of the Pegase mechanism, and the future of Palestinian Authority funding, will depend on continued engagement from both donor countries and the parties involved in the Israeli-Palestinian conflict. Observers will be watching closely for further developments in the coming months, particularly regarding the implementation of the UN Security Council resolution and any potential shifts in international policy towards the Palestinian Authority and the broader Middle East peace process.
For those seeking more information on the ongoing situation, staying informed through reputable news sources and official EU statements is crucial.
