EU disburses third instalment of the emergency package for the Palestinian Authority following agreement on a comprehensive reform agenda

On 18 November, the European Union disbursed further short-term emergency financial support to the Palestinian Authority (PA). It amounts to a total of €110 million in grants through the PEGASE mechanism to pay salaries and pensions of the civil servants in the West Bank and to ensure the provision of essential services.

EU assistance helps address the most pressing financial needs of the Palestinian Authority and supports its substantial and credible reform agenda.

The short-term emergency financial support follows the signature of a Letter of Intent by the European Commission and the Palestinian Authority on July 19, setting out a strategy for addressing the critical budgetary and fiscal situation of the Palestinian Authority.

This last payment follows agreement with the Palestinian Authority on a comprehensive reform programme that will underpin an EU Comprehensive Programme for Palestinian Recovery and Resilience. The multi-annual programme covering the period until end of 2026 is currently under development and will be proposed shortly by the Commission. It will be contingent on the implementation of the reform agenda by the Palestinian Authority.

The European Union is the biggest provider of external assistance to the Palestinians, amounting to indicatively €1.36 billion for 2021-2024, of which over €1.03 billion have already been adopted.

The first payment of the emergency package of €150 million was disbursed on 31 July, whilst a second payment of €122.5 million was disbursed at the beginning of September based on progress on the prior actions, as set out in the Annex to the Letter of Intent.