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EU Announces 1.6 Billion Euro Aid Package to Palestinian Authority, Tied to Reforms

The European Union will provide approximately €1.6 billion ($1.8 billion) in financial support to the Palestinian Authority over the next three years, European Commissioner for the Mediterranean Dubravka Suica told Reuters ahead of a key diplomatic summit on Monday.

The package, designed to bolster the PA’s financial stability and operational capacity, will be conditional on a series of governance and transparency reforms. The funding aims to strengthen the PA’s role as a credible partner for peace and stability in the region.

“We want them to reform themselves, because without reforming, they won’t be strong enough and credible in order to be an interlocutor — not only for us, but also for Israel,” Suica said.

The announcement comes on the eve of the first “high-level political dialogue” between EU foreign ministers and senior Palestinian officials, including newly appointed Palestinian Prime Minister Mohammad Mustafa. The talks are taking place in Luxembourg and focus on rebuilding the West Bank and Gaza, along with reviving prospects for a two-state solution.