Europe Increases Aid to Palestinian Authority, Linking Funds to Anti-Corruption Reforms
The European Union will provide a three-year aid package worth approximately €1.6 billion (about $1.8 billion) linked to much-needed reforms within the Palestinian Authority, the European Commissioner for the Mediterranean, Dubravka Suica, announced on Monday. The package is structured to allocate €620 million for financial support and PA reforms, €576 million for “resilience and recovery” projects in the West Bank and Gaza, and an additional €400 million in loans from the European Investment Bank, subject to its governing body’s approval.
“We want them to reform themselves because without reforming, they won’t be strong enough and credible to be an interlocutor—not only for us, but an interlocutor also for Israel,” Suica said while speaking to reporters in Luxembourg after talks with Palestinian Prime Minister Mohammad Mustafa. “A well-functioning and reformed Palestinian Authority must play a central role in the post-conflict governance of Gaza. This is our position.”
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The announcement comes as the PA’s finances have suffered significant strain over the years, with donor countries having cut back support that once covered nearly one-third of the PA’s annual $6 billion budget. Since the devastating Hamas-led attack on Israel on October 7, which further exacerbated regional instability, the need to rebuild and reform the PA has become increasingly urgent.
Suica’s remarks were made ahead of the first “high-level political dialogue” between EU foreign ministers and senior Palestinian officials. EU officials hope that the renewed dialogue and this expanded financial commitment will help the PA eventually take responsibility for Gaza after the current conflict subsides.
Despite the PA’s historical challenges with corruption and mismanagement—which critics say have even incentivized terrorism—EU support now averages around €400 million per year over the past 12 years. With the new package, Brussels aims to invest “in a credible manner in the Palestinian Authority,” Suica stressed.
