According to a written statement made by the EU Commission and the Palestinian Authority, an agreement was reached on the principles of emergency financial support and the economic recovery program.
Objectives of the Agreement
- To ensure the economic stability of the Palestinian Authority by reducing the effects of the occupying Israeli attacks on Gaza.
- Contributing to fiscal sustainability by supporting reforms.
Plan Details
The plan will provide short-term emergency financial support to meet the Palestinian Authority’s urgent needs and support reforms. A total of €400 million in grants and loans will be paid in three installments between July and September.
Palestine Donation Coordination Platform
A “Palestine Donor Coordination Platform” will be established to receive contributions from other donors. The platform will operate from autumn 2024 until the end of 2026 and aims to provide short-term financial support.
Long Term Support Program
A multi-year support program is also planned to help the Palestinian Authority achieve budget balance by 2026 and ensure long-term fiscal sustainability. This program will start in the fall and continue until the end of 2026.
Statement from the President of the EU Commission
EU Commission President Ursula von der Leyen, made the following statements about the plan: “Israelis, Palestinians and the entire region deserve peace, security and stability. A two-state solution is the best way to achieve this. With this joint strategy, we support the reform efforts of the Palestinians Authority.”
Von der Leyen said the cooperation was aimed at rebuilding the West Bank and Gaza, adding: “We need an immediate and permanent ceasefire and we must prepare for the next day.”
