EU Plans to Boost Financial Aid to Palestinian Authority

The European Union plans to increase its financial support to the Palestinian Authority with a new aid package worth about 1.6 billion euros ($1.8 billion) over the next three years.

Dubravka Šuica, the EU Commissioner for Mediterranean Affairs, said in an interview with Reuters that the financial assistance will be closely tied to reforms within the Palestinian Authority, which has faced criticism over alleged corruption and mismanagement.

Šuica emphasized that reforms are essential, noting that without internal changes, the Palestinian Authority would lack the strength and credibility needed for meaningful dialogue, not only with the EU but also with Israel.

Her comments come ahead of the first high-level political dialogue between European Union foreign ministers and senior Palestinian officials, including Palestinian Prime Minister Mohammad Mustafa, taking place today in Luxembourg.

The European Union remains the largest donor to the Palestinians and hopes that the Palestinian Authority, which currently governs parts of the West Bank, will eventually take over administrative responsibilities in Gaza once the ongoing conflict between Israel and Hamas ends.

However, Israeli Prime Minister Benjamin Netanyahu’s government has so far rejected the idea of transferring control of Gaza to the Palestinian Authority and has distanced itself from the EU’s broader goal of a two-state solution that would establish an independent Palestinian state.

According to Šuica, 620 million euros will be allocated for direct financial support and governance reforms, 576 million euros for adaptation and recovery projects in the West Bank and Gaza, and 400 million euros in loans from the European Investment Bank, pending approval from its board.

Šuica noted that the EU’s average financial support for the Palestinian Authority has been around 400 million euros annually over the past twelve years.

She added that the European Union is now investing in the Palestinian Authority in a more structured and reliable way.