ATHENS

The EU and Palestinian Authority on Friday agreed on emergency financial support to address Palestinians' most urgent financial needs amid the ongoing devastating Israeli war on Gaza. 

“The European Commission and the Palestinian Authority have signed a Letter of Intent which sets out a strategy for addressing the critical budgetary and fiscal situation of the Palestinian Authority and the Palestinian economy, whose structural vulnerabilities have been exacerbated by the consequences of the war in Gaza and much-needed pending developments and reforms,” the commission said in a statement.

As the first step, short-term emergency financial support, worth €400 million ($435 million), will be given to the Palestinian Authority to address its most urgent financial needs and support its substantial and credible reform agenda.

The support will be disbursed in three payments between July and September 2024, subject to progress in the implementation of the reform agenda of the Palestinian Authority.

As the second step, the Comprehensive Programme for Palestinian Recovery and Resilience will be launched and funding from other donors will be sought.

As such, the commission has proposed to set up a Palestine donor coordination platform as of autumn 2024, until the end of 2026.

Commenting on the development, EU Commission President Ursula von der Leyen said: “Together, we are laying the groundwork for economic and political stability in the West Bank. And we are setting the foundations for the reconstruction of Gaza. We need an immediate and enduring cease-fire. And we must prepare for the day after.”

Also commenting, the union’s foreign policy chief, Josep Borrell, said: “The urgency to step up our support to the Palestinian Authority has never been so high.”

Arguing that the union is delivering a timely financial package, he added: “But the needs are immense: we call again on Israel to urgently release all tax revenues."