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09/08/2024 | Press release | Distributed by Public on 09/08/2024 14:09

The EU provides €43 million for the Palestinian Authority payment of salaries

The European Union has provided yesterday a contribution of €43 million to help the Palestinian Authority pay the salaries and pensions of its civil servants in the West Bank.

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. The EU and its Member States remain the most reliable and committed donors and partners to the Palestinian people," said the DeputyEU RepresentativeMaria Velasco.

Background

Most of the European Union's assistance to the Palestinian Authority (PA) is channelled through the PEGASE Direct Financial Support, supporting the PA reform process and various national development plans. PEGASE supports the PA's recurrent expenditures, mainly the salaries and pensions of civil servants, the social allowances paid through the cash transfer programme and part of the costs of referrals to the East Jerusalem Hospitals.

Additional links:

EU proceeds with first tranche of short-term emergency financial support to the Palestinian Authority

The European Commission and the Palestinian Authority agree on emergency financial support and the principles for a recovery and resilience programme