EU proceeds with the disbursement of further emergency financial support to the Palestinian Authority

Today, the European Union disburses further short-term emergency financial support to the Palestinian Authority (PA). It amounts to a total of €122.5 million that includes €38.5 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, and €84 million through a credit line to the Palestine Monetary Authority, provided by the European Investment Bank. 

EU assistance helps address the most pressing financial needs of the Palestinian Authority and supports its substantial and credible reform agenda. The disbursement follows the signature of a Letter of Intent by the European Commission and the Palestinian Authority, setting out a strategy for addressing the critical budgetary and fiscal situation of the Palestinian Authority. The disbursement is linked to the Palestinian Authority’s commitment to demonstrate concrete progress with respect to the agreed prior actions, as set out in the Annex to the Letter of Intent.

The third and last payment of this short-term emergency financial support is planned by the end of September, subject to agreement on the ‘Comprehensive Programme for Palestinian Recovery and Resilience’. Dialogue with the Palestinian Authority will continue.

Background 

The European Union is the biggest provider of external assistance to the Palestinians, amounting to indicatively €1.36 billion for 2021-2024 under the European Joint Strategy, of which over €920million have already been adopted.