The European Union today transferred €122.5 million in short-term emergency financial support to the Palestinian Authority. This includes €38.5 million in grants through the Pegas mechanism to pay civil servants in the West Bank and €84 million through a credit facility to the Palestinian Monetary Authority, provided by the European Investment Bank.

This payment is the second contribution to the €400 million short-term emergency financial support package announced by the EU in July 2024. This package is part of an EU-Palestine agreed strategy to address the critical fiscal and budget situation of the Palestinian Authority and the Palestinian economy, a combination of grants and loans to be disbursed in three tranches, with the first tranche of €150 million already being implemented in July.

EU Representative Alexander Stutzmann said: “We are facing unprecedented challenges and critical junctures. This is another reason why we are strengthening our engagement and working proactively to support our partners in maintaining hope and protecting prospects for peace and security in this region. We have worked closely with Prime Minister Mustafa and his government to develop this short-term emergency financial support package based on an agreed strategy aligned with the Palestinian National Agenda for Reform. This strategy sets out a clear roadmap for achieving much-needed reforms, while stabilizing the Palestinian Authority and the West Bank economy. In the past two months, the Palestinian Authority has made significant achievements and maintained its services under a difficult reality. We look to the future and are determined to continue our joint work with the Palestinian government.”