European Commission reverses plan to cut aid to Palestinians

Published October 10th, 2023 - 07:37 GMT
European Commission
European Commission announced earlier its plan to cut aid to Palestine. (Shutterstock)

ALBAWABA - The European Commission made an announcement on Monday that humanitarian aid payments to Palestinians will not be suspended, directly contradicting an earlier statement by Oliver Varhelyi, the European Union's Commissioner for Neighborhood and Enlargement.

The Commission stated that it has initiated a review of its assistance to Palestine in the wake of the recent escalation between Hamas and Israel over the weekend.

In their statement, the Commission clarified, "At this time, as no disbursements were expected, there will be no suspension of payments." They also affirmed that the review initiated was unrelated to humanitarian aid provided as part of civil protection operations and European humanitarian aid.


Israeli military radio said that Palestinian fighters have “infiltrated” Israel from Gaza and seized military bases as photos and videos went viral online showing Hamas fighters on vehicles inside Israel and others paragliding into Israeli territory." />

Contradictory Statements

This announcement directly contradicts Oliver Varhelyi's earlier statement that the European Commission was "putting under review" grants directed to Palestinians due to the recent armed escalation between Palestinian factions and Israel.

Varhelyi had posted on his social media account earlier on Monday that, "As the EU's largest donor to Palestinians, the European Commission has put its entire development portfolio worth $691 million under review." He added that "the level of terrorism and violence against Israel and its people is a turning point."

In the same context, he announced that "all payments are suspended immediately."

Importance of Humanitarian Aid for the Palestinian Economy

A significant portion of Palestinians, totaling 2.1 million out of 5.5 million, require humanitarian assistance. The economic situation in Palestine has been undermined by the Israeli blockade imposed on Gaza since 2007, according to the European Commission.

Over 80% of the population relies on aid due to the blockade and ongoing violence. Additionally, the West Bank has witnessed a troubling increase in violence, demolitions, and evictions, as well as restrictions on movement in 2022. Data shows that out of 209 Palestinian deaths in 2022, 155 occurred in the West Bank and East Jerusalem.

Approximately 800,000 Palestinians in East Jerusalem, Hebron, and Area C, which is under Israeli control and covers more than 60% of the West Bank, need improved access to basic services like water, healthcare, and education. Recent factors, including the Russia-Ukraine war, have led to a sharp increase in food and fuel prices.

In response, the European Union allocated over €26.5 million in humanitarian aid to needy Palestinians in 2022, including €2.1 million in external assistance from Italy, Spain, Finland, and France. Since 2000, the European Union has provided more than €853 million in humanitarian aid aimed at meeting the basic needs of Palestinian residents.

U.S. Humanitarian Aid to Palestine

Despite Washington's pivotal role in facilitating peace between Palestine and Israel, the United States is the second-largest source of humanitarian aid to Palestinians, according to the Arab Center Washington DC. However, this aid was significantly reduced during the administration of former U.S. President Donald Trump when the U.S. government decided to cut $200 million from the fiscal year 2017 assistance allocated to the West Bank and Gaza.

This decision came at the same time as the U.S. recognized Jerusalem as Israel's capital and relocated its embassy there as part of the "Deal of the Century."

During his recent visit to Palestine, President Joe Biden announced an additional $316 million aid package, including $201 million for UNRWA, which provides assistance to millions of Palestinian refugees living under Israeli control and in neighboring Arab countries. The package also included a multi-year commitment of $100 million to East Jerusalem hospitals.

The issue of humanitarian aid to Palestinians remains a crucial aspect of the complex Israeli-Palestinian conflict, with both the European Union and the United States playing significant roles in providing assistance to those in need.

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