The European Union recently conducted a review to ensure that its funding to the Palestinian territories was not inadvertently being used by militant groups. This came after the leader of France’s far-right National Rally and MEP Jordan Bardella alleged that European public funds were indirectly supporting the Hamas terrorist movement. The EU High Representative for Foreign Affairs, Josep Borrell, called on Bardella to provide proof to support his claim or retract his statement. Bardella cited the EU’s funding to the Islamic University of Gaza, co-founded by Hamas’ founder, Ahmed Yassin, as evidence. The EU maintains a policy of “no contact” with Hamas and channels aid through UN agencies and other organizations.
Despite not finding any evidence of EU funds reaching terrorist groups, the European Commission suspended two EU-funded projects in the Palestinian territories following allegations of funds being used to incite hatred. Additional controls, such as an anti-incitement clause in contracts with civil society groups, are being considered by the EU. The EU is also planning to monitor the public communication of groups receiving funding for hate speech or incitement to violence. The European Commission has yet to confirm the adoption of these safeguards or provide information on projects affected by these measures.
Concerns about reputational risks were raised after the review identified possible issues with an educational project under the EU’s Erasmus+ programme in the Palestinian territories. The Islamic University of Gaza, which received EU funding, was destroyed by Israeli airstrikes in the aftermath of the 7 October attacks. The university was considered an important Hamas center by the Israeli Defense Forces. The EU education chief stated that a project awarded to the university was suspended after it refused to sign a clause ensuring that no individuals associated with terrorism would receive funding. Allegations of neutrality breaches have also been made against the UN agency for Palestinian refugees, UNRWA, which receives EU funding.
Following allegations that UNRWA staff were involved in the 7 October attacks, an independent review group led by former French Foreign Minister Catherine Colonna was appointed to investigate. The report found that while UNRWA has mechanisms in place to ensure compliance with neutrality, breaches still occur. As a result of these findings, essential foreign funding was restored after several EU member states suspended their funding programs in response to the allegations. In August, the UN fired nine staff members based on findings that they may have been involved in the attacks. The EU is committed to ensuring that its funding to the Palestinian territories is used for its intended purposes and does not support terrorist organizations like Hamas.