The European Union is set to boost its financial aid to the Palestinian Authority (PA) with a comprehensive three-year support package worth approximately €1.6 billion ($1.8 billion), according to Dubravka Suica, the European Commissioner for the Mediterranean.
In an interview, Suica stressed that the package will be closely tied to governance reforms within the PA, which has faced longstanding criticism over corruption and inefficiency. “We want them to reform themselves because without reforming, they won’t be strong enough and credible… not only for us, but also as an interlocutor for Israel,” she said.
The announcement comes ahead of the EU’s first high-level political dialogue with Palestinian officials, including Prime Minister Mohammad Mustafa, scheduled for Monday in Luxembourg. The talks signal a renewed European push to play a greater role in Middle East diplomacy.
Breakdown of the EU support package includes €620 million dedicated to financial support and institutional reform of the PA, €576 million for resilience and recovery in the West Bank and Gaza, and €400 million in loans from the European Investment Bank, pending board approval.
The EU remains the largest donor to the Palestinians, with average annual support for the PA reaching around €400 million over the past 12 years. The new commitment nearly triples that figure.
While EU leaders hope the PA may one day assume responsibility for Gaza following the ongoing Israel-Hamas conflict, Israeli Prime Minister Benjamin Netanyahu’s government has so far rejected such proposals. It also continues to oppose the EU-backed vision of a two-state solution, which envisions a sovereign Palestinian state alongside Israel.
Despite the political complexities, Suica emphasised the EU’s commitment: “We are investing now in a credible manner in the Palestinian Authority.”
Melissa Enoch
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