EU Unveils €1.6B Aid Package for Palestinian Reform

The European Union has announced a comprehensive financial aid package of up to €1.6 billion ($1.8 billion) to support the Palestinian Authority and fund projects in the West Bank, Jerusalem, and Gaza from 2025 to 2027. This aid aims to stabilize the region and bolster the Palestinian Authority's governance capabilities amidst ongoing conflicts with Israel. The package includes €620 million in direct budget support contingent on reforms in fiscal sustainability, governance, and infrastructure, and €576 million for economic recovery projects. Additionally, the EU plans to extend €400 million in low-cost loans to boost the private sector, reinforcing their role as the largest donor to the Palestinians. The aid is part of a broader EU strategy to promote resilience and sustainable peace in the region based on a two-state solution. This announcement coincided with a high-level political dialogue between EU foreign ministers and Palestinian officials in Luxembourg.