LUXEMBOURG /PNN /
Today, at the occasion of the first ever High-Level Political Dialogue between the European Union and the Palestinian Authority, the Commission proposed a multiannual Comprehensive Support Program worth up to €1.6 billion, to foster Palestinian recovery and resilience.
With this Program, the EU reiterates its unwavering support for the Palestinian people and its commitment to a lasting and sustainable peace based on the Two-State solution, said a press release issued by the European Commission.
It will cover the period from 2025 to 2027 and is structured around three pillars:
Support to services for Palestinian people
Around €620 million in grants of direct assistance to the budget of the Palestinian Authority (PA). This is an increase compared to previous years. It will support the PA to address the most urgent needs of the public administration. The funds will also help the Palestinian Authority to continue delivering services to its people.
Most of EU disbursements will be linked to the Palestinian Authority's progress on key reforms in fiscal sustainability, democratic governance, private sector development and public infrastructure and services; contributing to sustainable state-building across Palestinian territories. The EU and the Palestinian Authority have identified these reforms in the Reform Matrix, agreed in November 2024. The EU will disburse its direct financial assistance via the EU mechanism PEGASE to guarantee the necessary controls and existing safeguards regarding the final recipients of the EU support.
Support to recovery and stabilization of the West Bank and in Gaza
Around €576 million in grants are proposed to support concrete projects on the ground to foster economic recovery and resilience in the West Bank, East Jerusalem and in Gaza, once the situation on the ground allows. Thanks to an integrated approach the focus will be on different sectors including, water, energy, infrastructure.
As part of this pillar to increase resilience, we are proposing to allocate €82 million per year to provide services to Palestine refugees via the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), both in the occupied Palestinian territories and the wider region. This will enable UNRWA to continue playing its crucial role both as a humanitarian and a development actor.
The support for the private sector
As part of the Multiannual Comprehensive Program for Palestine 2025-2027, the Commission will support with loans for up to €400 million by the European Investment Bank (EIB) to new finance to the Palestinian private sector, subject to approval of EIB's Governing Bodies.
Mobilizing international support via a dedicated Donor Platform
In addition, the Commission will launch a dedicated Palestine Donor Platform. The Platform will offer a forum for the Palestinian Authority to present the implementation of its Reform Agenda and will ensure full transparency in the implementation of the Program. This Platform will also allow for discussions on key elements for future engagement on Gaza and coordinate international efforts for its recovery and reconstruction, once conditions allow.
