EU to support Palestinians with €1.6-billion aid programme

The European Union said on Monday that it will support reconstruction and resilience in the Palestinian Territories with €1.6 billion ($1.8 billion), to be dispensed over three years.

"With this programme, 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," a European Commission statement said.

The funds will cover the period from 2025 to 2027 and are structured around three pillars, the statement said.

Of the total, €620 million in direct assistance grants will be paid to the Palestinian Authority (PA) for its urgent needs and the delivery of services to its people, it said.

A large part of the aid is to be linked to reforms, including democratization and sustainable budget management.

Another €576 million is earmarked for specific projects in the West Bank, East Jerusalem and the Gaza Strip "once the situation on the ground allows," the statement said with regard to the Gaza war.

The focus will be on different sectors, including water, energy and infrastructure, it said.

In addition, loans from the European Investment Bank for financing in the Palestinian private sector are to be supported with up to €400 million.

According to the EU, it is the largest supporter of the Palestinians and has made around €1.36 billion available between 2021 and 2024.

More than €1 billion of this has reportedly already been allocated.

At a meeting scheduled for Monday evening in Luxembourg, EU High Representative for Foreign Affairs Kaja Kallas and Palestinian Prime Minister Mohammad Mustafa are scheduled to discuss the Gaza conflict and prospects for a two-state solution.

The last parliamentary elections in the Palestinian Territories took place in January 2006, bringing victory to the Hamas movement.

The four-year legislative period expired in 2010. Since then, there has been no democratically legitimized leadership.

A new election has been announced several times, but has not taken place due to ongoing disputes between the Fatah movement in the West Bank and Hamas in the Gaza Strip.