EU Provides €122.5 Mln in Support to Palestine

The European Union announced today a short-term financial aid package of €122.5 million to support the Palestinian government.

According to a press release, the funding will include €38.5 million in grants through the PEGASE mechanism to help pay the salaries of civil servants in the West Bank, along with €84 million in credit facilities for the Palestinian Monetary Authority, provided by the European Investment Bank.

This is the second installment of the EU's €400 million emergency financial aid package, initially announced in July 2024.

The package is part of a broader strategy between the EU and Palestine to address the critical financial situation of the Palestinian government and its struggling economy.

The aid comprises a combination of grants and loans, disbursed in three phases. The first installment of €150 million was already delivered in July.

EU Representative Alexander Stutzmann emphasized the urgency of the situation, stating, "We are facing unprecedented challenges at a critical juncture.

This is why we must enhance our engagement and work proactively to support our partners in maintaining hope and safeguarding the prospects for peace and security in the region."

Stutzmann also highlighted the close collaboration between the EU and Palestinian Prime Minister Mohammed Shtayyeh in developing this short-term financial aid package, which aligns with the Palestinian National Reform Agenda.

He praised the Palestinian government for its significant achievements over the past two months, including maintaining essential services in challenging circumstances, and expressed optimism about continuing to work together.