The European Union (EU) recently pledged a significant increase in financial assistance to the Palestinian Authority (PA), allocating approximately EUR1.6 billion ($1.8 billion). This step seeks to bolster PA’s financial stability and governance capabilities amid Israel’s withholding of Palestinian tax revenues. This development was covered extensively by both Reuters and Al Jazeera. Dubravka Suica, European Commissioner for the Mediterranean, provided details on how EU aid would be allocated: EUR620 million will go toward direct financial support and reforms, EUR576 million towards resilience and recovery efforts in West Bank and Gaza and EUR400 million as loans from European Investment Bank loans that must first be approved. Suica emphasised EU’s commitment to invest in credible ways in PA to enhance legitimacy and effectiveness. Israeli actions against Palestinian tax revenues has compounded their financial difficulties over recent years. Israel collected these tax revenues on behalf of PA under Oslo accords but has withheld them due to political disagreements, including allegations about Hamas support by PA members. According to The National, Middle East Monitor and Reuters. +2 The EU’s increased support comes amid growing concern over the Palestinian Authority (PA)’s potential collapse and its wider effects on regional stability. Officials hope that strengthening the PA will allow it to assume greater responsibilities, potentially including governance of Gaza post-conflict. Unfortunately, Israel Prime Minister Benjamin Netanyahu’s government opposes this idea while rejecting any idea of two state solution proposed by EU. This development underlines the EU’s leading role as donor to Palestinians and commitment to building an effective Palestinian governance structure. At the same time, EU continues advocating for two state solution while stressing importance of having credible PA as key interlocutor in peace process negotiations.
