KUALA LUMPUR: The European Union (EU) is allocating another €199.2 million financial package in support of the Palestinian people.
This brings the total assistance provided by the bloc to the Palestinian people under its 2022 budget allocation to €296 million.
The office of the European Union Representative (West Bank and Gaza Strip, UNRWA) in a statement said this package of €199.2 million will support the Palestinian Authority’s expenditures for social allowances, medical referrals, salaries and pensions, and projects in the occupied Palestinian territory, in addition to EU-funded projects in East Jerusalem.
“This adds to the already disbursed financial support of €97 million to UNRWA, which includes a €15 million top-up from the Food and Resilience Facility aimed at mitigating the impact of the Russian invasion of Ukraine on food prices and food security,” it said.
The EU announced the allocation during a signing ceremony in Palestine which was attended by President Mahmoud Abbas, Prime Minister Mohammad Shtayyeh, Finance Minister Shukri Bishara, and the EU Heads of Mission.
The priorities for last year were identified and agreed upon through consultation and sector policy dialogue, as set by the framework of the European Joint Strategy 2021-2024.
Of the budget, €114.2 million will support the Palestinian Authority in the payments of the salaries and pensions of civil servants, the social allowances to vulnerable families and the referrals to the East Jerusalem Hospitals.
Under the programme, the EU will continue to support key reforms in the areas of public financial management, water and energy. The amount also includes €1.2 million from Austria as a contribution to social allowances, it added.
A €30 million will be used to increase water availability in Gaza, where water quality and quantity remain below international standards, while €27 million will go towards helping micro-, small and medium-sized enterprises (MSMEs) acquire green competitiveness, climate-smart agribusiness, rural finance inclusion, and environmental policy.
The statement added that a €12 million envelope will help in addressing the needs of the Palestinian population in East Jerusalem through the EU East Jerusalem programme that covers areas ranging from education to health; social inclusion to private sector development; community empowerment to human rights.
In his remarks during the signing ceremony, the EU Representative, Sven Kühn von Burgsdorff said: “Despite the numerous economic, social, and political challenges Palestinians face in their quest for self-determination and well-being in the occupied Palestinian territory, the EU remains committed to the two-state solution.
“We will also continue to work with the Palestinian government towards structural, economic and fiscal reforms that will improve the performance and efficiency of its public services.”
The EU remains a steady supporter and one of Palestine’s main development partners. It foresees providing up to €1.177 billion in financial support from 2021 to 2024.
A main objective of EU’s financial support is to establish accountable institutions for a future Palestinian State and to support the emergence of a self-sustaining economy.