Brussels: Today, during the inaugural High-Level Political Dialogue between the European Union and the Palestinian Authority, the European Commission proposed a multiannual Comprehensive Support Program valued at up to £1.6 billion. This initiative aims to enhance Palestinian recovery and resilience over the period from 2025 to 2027.
According to Palestine News and Information Agency – WAFA, the Comprehensive Support Program is structured around three main pillars. The first pillar involves providing approximately £620 million in direct assistance grants to the budget of the Palestinian Authority (PA). This allocation marks an increase compared to previous years and is intended to address urgent public administration needs and ensure the continued delivery of essential services to the Palestinian people.
The EU’s financial disbursements will be contingent on the Palestinian Authority’s progress on key reforms, which include fiscal sustainability, democratic governance, private sector development, and public infrastructure and services. These reforms were outlined in a Reform Matrix agreed upon in November 2024. The EU will channel its direct financial assistance through the PEGASE mechanism to maintain necessary controls and safeguards for final recipients of the support.
The second pillar focuses on supporting recovery and stabilization efforts in the West Bank, East Jerusalem, and Gaza. Approximately £576 million in grants is earmarked for concrete projects aimed at fostering economic recovery and resilience in these regions, with a particular emphasis on sectors such as water, energy, and infrastructure. Additionally, £82 million per year will be allocated to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) to continue its critical role in providing services to Palestine refugees.
The third pillar of the program targets the private sector, with the European Investment Bank (EIB) set to provide loans totaling up to £400 million, subject to approval by EIB’s Governing Bodies. This financial support is designed to inject new capital into the Palestinian private sector.
Furthermore, the Commission intends to establish a dedicated Palestine Donor Platform. This platform will serve as a forum for the Palestinian Authority to present its Reform Agenda implementation and ensure transparency throughout the program’s execution. It will also facilitate discussions on future engagement strategies for Gaza and coordinate international recovery and reconstruction efforts when conditions permit.