 "EU announces $1.8 billion aid package for post-war governance, recovery in Gaza")
The European Union on Monday announced a €1.6 billion ($1.8 billion) aid package to support the Palestinian Authority and fund projects in the West Bank, East Jerusalem and Gaza, as Israel widened its military campaign in the enclave.
Dubravka Suica, the European Commissioner for the Mediterranean, said the financial support would go hand in hand with reforms of the Palestinian Authority, which has been accused by critics of corruption and bad governance.
“Over two-thirds of the two-year package will be allocated directly to the Palestinian Authority to boost financial stability, governance and private sector development,” she said.
“This is about governance, economic recovery and resilience,” said Šuica after meeting Palestinian Prime Minister Mohammad Mustafa in Luxembourg.
“Our program aims to support the Palestinian people in building a sustainable future,” said EU Mediterranean Commissioner Dubravka Šuica. “It’s about the governing capacity. It’s about advancing economic recovery. It’s about strengthening the resilience of the private sector.”
She said,” A well-functioning and reformed Palestinian Authority must play a central role in the post-conflict governance of Gaza. This is our position.”
Over 576 million euros ($653 million) in grants will fund projects in several sectors across the Palestinian territories, with 82 million euros ($93 million) going to the U.N. Palestinian refugee agency.
Impact Shorts
More ShortsThe private sector can benefit from up to 400 million euros ($456 million) in low-cost loans from the EU, the world’s largest aid donor to the Palestinians.
Brussels – the biggest international donor to the Palestinians – said the package would include 620 million euros in grants for the Palestinian Authority.
The funds will be linked to reforms on “fiscal sustainability, democratic governance, private sector development and public infrastructure and services”, the EU said.
The rest will be made up of 576 million euros in grants for projects aimed at helping economic recovery in Gaza, the West Bank and East Jerusalem.
A further 400 million euros in loans would come from the bloc’s lending arm, the European Investment Bank.
The EU’s new package follows the previous three-year support plan worth 1.36 billion euros from 2021 to 2024.
Despite being a major provider of aid, the EU has struggled to exert influence in the crisis as its 27 countries frequently differ in their approach to the conflict.
With inputs from agencies
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