EU Announces €1.6 Billion Aid Package for Palestinians

The European Union declared a new three-year financial support package for the Palestinians, totaling up to €1.6 billion ($1.8 billion). The announcement preceded a meeting between Palestinian Prime Minister Mohammed Mustafa and EU foreign ministers in Luxembourg. This aid aims to stabilize the West Bank and Gaza.

EU foreign policy chief Kaja Kallas stated the EU is increasing its support to the Palestinian people. The EU seeks to bolster the Palestinian Authority (PA) amidst ongoing conflict. This reinforcement aims to enable the PA to address the needs of Palestinians in the West Bank and prepare for governance in Gaza when feasible.

Brussels, the primary international donor to the Palestinians, specified that €620 million in grants would be allocated to the Palestinian Authority. These funds are contingent upon reforms concerning fiscal sustainability, democratic governance, private sector development, and public infrastructure. An additional €576 million in grants will support projects focused on economic recovery in Gaza, the West Bank, and East Jerusalem.

The package also includes €400 million in loans from the European Investment Bank. This new initiative succeeds the previous three-year support plan, which provided €1.36 billion from 2021 to 2024. The EU's commitment underscores its ongoing efforts to support the Palestinian people and promote stability in the region.