Commission disburses €25 million for the Palestinian Authority and €16 million for UNRWA

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The Commission has today processed a second tranche of assistance of €25 million for the Palestinian Authority to contribute to the payment of salaries and pensions of Palestinian civil servants and disbursed €16 million for UNRWA to provide basic services such as health and education to Palestinian refugees.  

The €25 million payment under PEGASE will help the Palestinian Authority to meet part of its commitments towards Palestinian civil servants in the West Bank. At this critical juncture, it will provide a much-needed contribution to the significant challenges facing the Palestinian economy, in particular before Eid al-Adha.

The payment is the second tranche disbursed to the Palestinian Authority as part of the €118.4 million assistance package adopted in December 2023. The first €25 million payment were disbursed in March. The payment of the second tranche has been also carried out in conformity with the conclusions of the review of EU financial assistance to Palestine[1] after the tragic events on 7 October 2023, including the extended screening of the beneficiaries. Through the EU’s PEGASE mechanism, EU assistance will contribute to the payments of the salaries and pensions of civil servants in the West Bank, the social allowances for vulnerable families through the Cash Transfer Programme in the West Bank and Gaza, the payment for the medical referrals to the East Jerusalem Hospitals and support the administrative and technical capacity of the Palestinian Authority institutions.

With regards to UNRWA, in light of the progress made by the Agency against the agreed conditions and measures, the Commission has also processed the payment corresponding to the second tranche of €16 million. In particular, among the conditions for our funding, and as agreed with the Agency, the Commission has received an action plan on the implementation of the recommendations of the Independent Review Group led by former French Minister of Foreign Affairs Colonna. UNRWA has also confirmed that ex-ante vetting and screening of its staff against the relevant EU sanctions list is carried out and has presented a report on how to strengthen its Internal Oversight Services and Ethics Department.

This new payment to UNRWA brings to €66 million the EU’s total development assistance out of the €82 million for the UN Agency in 2024. The remaining tranche will be subject to the implementation of our agreement with UNRWA and the Agency’s compliance with the agreed conditions and measures.  

Background

The European Union is the biggest provider of external assistance to the Palestinians which amounts to indicatively almost €1.2 billion for 2021-2024 under the European Joint Strategy, of which €809.4 million have already been adopted.

The PEGASE programme aims to contribute to a democratic, accountable, economically viable Palestinian state as well as the fulfilment of social rights. PEGASE provides for robust ex ante and ex post screening of beneficiaries carried out by an independent audit company.

Further details of how PEGASE operates and how screening has been extended can be found in the communication adopted on the review of ongoing financial assistance for Palestine p. 11.

The EU is already reflecting on a more mid-term package to support the Palestinians and the reform agenda of the new Palestinian Government, with the aim of contributing to lay the ground for economic and political stability of Gaza and the West Bank, in cooperation with the international community, once conditions allow on the ground.

[1] This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue.

For more information

Overview EU support – website

The Office of the European Union Representative (West Bank and Gaza Strip, UNRWA)

Communication to the Commission: Review of ongoing financial assistance for Palestine