At the inaugural High-Level Political Dialogue between the EU and the Palestinian Authority, the Commission proposes a multiannual Support Programme worth up to €1.6 billion for Palestinian recovery and resilience.
With this Programme, the EU reaffirms its support for the Palestinian people and its commitment to a sustainable peace based on the Two-State solution.
The Programme covers 2025 to 2027 and focuses on three pillars:
- Support for services for the Palestinian people
Approximately €620 million in grants will be provided directly to the Palestinian Authoritys (PA) budget, helping address urgent administrative needs and ensuring continued services to the people.
Most EU disbursements are linked to the PAs progress on reforms in fiscal sustainability and democratic governance, outlined in the Reform Matrix agreed in November 2024.
- Support for recovery and stabilization of the West Bank and Gaza
About €576 million in grants are proposed for projects to foster economic resilience in the West Bank, East Jerusalem, and Gaza. The focus is on sectors like water, energy, and infrastructure.
As part of this pillar, €82 million annually is allocated for services to Palestinian refugees through the United Nations.
- Support for the private sector
The Programme includes up to €400 million in loans by the European Investment Bank (EIB) for the Palestinian private sector.
Mobilising international support via a dedicated Donor Platform
The Commission will also launch a Palestine Donor Platform to ensure transparency and coordination of international efforts.
Background
On 19 July 2024, the EU and the Palestinian Authority signed a Letter of Intent for budgetary reforms.
The Programme presented today is the result of further discussions.
The EU is the largest external donor to the Palestinians with an indicative allocation of €1.36 billion for 2021-2024.
*This designation shall not be construed as recognition of a State of Palestine.
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