The European Union on Monday announced a new three-year financial aid package worth up to 1.6 billion euros ($1.8 billion) for the Palestinians, as part of efforts to stabilize the West Bank and Gaza and strengthen the Palestinian Authority.
The announcement came as EU foreign ministers met with Palestinian Prime Minister Mohammad Mustafa in Luxembourg during the first session of a new “high-level dialogue” between the two sides.
“We are stepping up our support to the Palestinian people. EUR1.6 billion until 2027 will help stabilize the West Bank and Gaza,” EU foreign policy chief Kaja Kallas said.
The EU aims to reinforce the Palestinian Authority as Israel resumed military attacks in Gaza following the end of a temporary cease-fire that had largely paused fighting for two months.
“This will reinforce the authority's ability to meet the needs of the Palestinian people in the West Bank and prepare it to return to govern Gaza once conditions allow,” Kallas said.
Kallas reiterated the EU’s condemnation of the “total blockade of aid into Gaza” and emphasized that there is no military solution to the conflict.
She added that she is recommending further sanctions on "extremist" Israeli settlers in the West Bank, though no consensus has yet been reached among EU member states.
Prime Minister Mustafa said the international community faces a “moment of truth” regarding the ongoing crisis in Gaza and the West Bank.
“We came to demand clarity from the international community,” he said. “There can be no lasting peace without accountability. Israel must be held responsible for the crimes committed.”
The EU — the largest international donor to the Palestinians — said the new support package includes 620 million euros in grants for the Palestinian Authority, tied to reforms in fiscal sustainability, democratic governance, private sector development, and public infrastructure and services.
An additional 576 million euros will be allocated to projects supporting economic recovery in Gaza, the West Bank, and East Jerusalem.
The remaining 400 million euros will come in the form of loans from the European Investment Bank.
The new package follows a previous three-year plan worth 1.36 billion euros, which ran from 2021 to 2024.
Despite its role as a major donor, the EU has struggled to exert unified political influence on the Israeli-Palestinian conflict, as divisions remain among its 27 member states over how to approach the crisis.
