BRUSSELS (AP) – The European Union (EU) unveiled a financial aid package of up to EUR1.6 billion (USD1.8 billion) to support the beleaguered Palestinian Authority and fund projects in the West Bank, Jerusalem and war-ravaged Gaza.
The offer came as Israel expanded its offensive across Gaza over the weekend.
More than a third of the money, to be provided over two years, will come as direct budget support to the Palestinian Authority and it’s aimed at improving financial sustainability, democratic governance and services to help the private sector develop.
“Our programme aims to support the Palestinian people in building a sustainable future,” said EU Mediterranean Commissioner Dubravka Šuica.
“It’s about the governing capacity. It’s about advancing economic recovery. It’s about strengthening the resilience of the private sector.”
Speaking to reporters after talks in Luxembourg with Palestinian Prime Minister Mohammad Mustafa, she said “a well-functioning and reformed Palestinian Authority must play a central role in the post-conflict governance of Gaza. This is our position.”
Over EUR576 million (USD653 million) in grants will go to fund projects in several sectors across the Palestinian territories, with EUR82 million (USD93 million) going to the United Nations Palestinian refugee agency.
The private sector can benefit from up to EUR400 million (USD456 million) in low-cost loans from the EU, the world’s largest aid donor to the Palestinians.
