The European Union on Wednesday provided 400 million euros in emergency funding to the Palestinian Authority to help it solve budget problems.
The first 150 million euro installment includes grants to pay the salaries of civil servants in the West Bank and support vulnerable families, Brussels said.
The remaining funds will be distributed in August and September subject to progress in the implementation of the Palestinian Authority’s (PA) reform agenda, the EU said in a statement.
The authority has been facing financial crisis for a long time. But the Gaza war has further affected the authority’s finances as Israel withholds tax revenue for the Palestinian territories.
The EU is the largest international economic supporter of Palestine. Its support is estimated at one billion two million euros between 2021 and 2024.
European Commission President Ursula von der Leyen said, “The EU is fully committed to supporting the Palestinian Authority at this difficult time. Our 400 million euro emergency aid supports the substantial reform agenda and paves the way for the recovery and reconstruction of Gaza.”
The EU executive said it would present a legislative proposal in early September for a comprehensive program for “Palestinian recovery and resilience”.
Brussels has said the scheme aims to help balance the current account by 2026 and link future payments to progress in implementing agreed-reform milestones.
The October 7 attack on Israel by Hamas has also affected the economy of the West Bank, which is occupied by Israel while Gaza is devastated.