This support will help the Palestinian Authority to meet part of its commitments towards Palestinian civil servants, as it continues to face a very challenging fiscal situation as a result of the prolonged economic crisis in the occupied Palestinian territory. This situation is seriously exacerbated by the irregular payments of Palestinian clearance tax and continuous deductions by Israel.

The €43 million contribution is provided by the European Union through the first tranche of short-term emergency financial support to the Palestinian Authority. The payment targets civil servants mostly working in the social sectors of health and education in the West Bank as well as pensioners. This short-term emergency financial support to the Palestinian Authority aims to address its most pressing financial needs and support its substantial and credible reform agenda.

“The European Union continues to make significant contributions to the Palestinian Authority budget, at the most critical times, to help pay the salaries of civil servants and pensioners.  We are supporting Palestinian teachers, health personnel and social workers who are crucial for education, health and social welfare services. Our contributions to civil servants salaries and pensions demonstrate once more our enduring support for Palestinian state-building efforts. The EU continues to call on Israel to stop its deductions the Palestinian tax revenues and to respects its commitments under the existing agreements. In addition, Israel should take immediate steps to improve the deteriorating economic situation in the occupied Palestinian territory such as removing the access restrictions on Palestinian workers.” said the Deputy EU Representative Maria Velasco.