EU Unveils €1.6 Billion Support Package for Palestinian Authority

The European Union announced a €1.6 billion package to financially support the Palestinian Authority over three years. The aid is tied to reforms within the Authority. The funding, comprising grants and loans, aims to strengthen institutions despite challenges. Controversies persist over Israel's stance on Gaza handover.

The European Union has pledged to increase its financial aid to the Palestinian Authority with a substantial €1.6 billion package over the next three years, according to Dubravka Suica, the European Commissioner responsible for the Mediterranean, in an exclusive interview with Reuters.

This funding comes with expectations for significant reforms of the Authority, which has faced criticism for alleged corruption and mismanagement. Suica emphasized the importance of reforms, stating that without them, the Palestinian Authority would lack the strength and credibility needed to engage with both the EU and Israel.

While the Palestinian Authority has welcomed this international support, Israeli leadership remains resistant to discussions involving Gaza's governance and the broader goal of a two-state solution. EU officials, nevertheless, continue to push forward, reinforcing their commitment with detailed allocations, including substantial loans and grants aimed at resilience and recovery.

(With inputs from agencies.)