On Thursday, in his keynote speech to the European Parliament, he promised to step up EU support for Palestine, condemning “the bloodshed in Gaza.” Just 24 hours later, the promise was kept: the European Commission and the Palestinian National Authority signed a letter of intent on short-term emergency financial support of €400 million in grants and loans, to be disbursed in three installments between July and September. The money will be released in exchange for a series of reforms by the PA, something that was welcomed by the Israeli government itself.
According to the Tel Aviv Foreign Ministry, in fact, the agreement between Brussels and the PNA is “an important first step that indicates Europe’s understanding and recognition of the need to ensure the implementation of reforms” by Palestine. According to Minister Israel Katz, the move is “the recognition of the fact that the current PNA has failed profoundly” and that “this is a step that creates a precedent and is a message to President Abu Mazen that if he wants help, he must stop financing terror”.
Katz is referring to the controversies that have accompanied EU support for Palestine over the years. According to Tel Aviv’s accusations, part of this aid has been used in the recent past to pay the salaries of alleged terrorists linked to Hamas. In 2022, Brussels had temporarily blocked the disbursement of 215 million euros for Palestine following a complaint by the Transatlantic Friends of Israel group about an alleged use of these funds to purchase school books that spread anti-Semitism. In reality, both accusations have been denied, but the issue of greater control over EU funds for the PA has remained among Tel Aviv’s key demands.
The programme signed by the Commission and the PNA includes a series of reforms to be implemented between autumn 2024 and the end of 2026: the measures aim to “ensure fiscal sustainability, while modernising the Palestinian administration and its governance, fighting corruption, promoting the rule of law and transparency, reforming social security and education systems, improving the business environment and strengthening the foundations of a market economy”, reads a note. “In addition, the programme aims to contribute to the improvement of economic and financial relations between Israel and the Palestinian National Authority, including through the regular payment of tax revenues due to the Palestinian National Authority and the removal of access restrictions for Palestinian workers”, concludes Brussels.
The signing of the agreement comes on the day the UN International Court of Justice ruled in a ruling that “Israel’s policy of Jewish settlements and exploitation of the resources of the Occupied Territories[in the West Bank, ed.]constitute a violation of international law.” In response, the radical right-wing ministers of the Israeli government, Itamar Ben Gvir and Bezalel Smotrich, called for the “annexation” of large parts of the West Bank.