EU Announces €1.6 Billion Aid Package for Palestinians Amid Escalating Gaza Conflict

TDT | Manama

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The European Union has unveiled a financial assistance package worth up to €1.6 billion to support the Palestinian Authority (PA) and fund development projects across the West Bank, East Jerusalem, and the Gaza Strip.

The announcement comes as Israel intensifies its military operations in Gaza, including a weekend strike on Al-Ahli Hospital in Gaza City, which forced the evacuation of patients and left at least one dead during the evacuation process.

Under the EU plan, more than one-third of the funding will be allocated as direct budgetary support to the Palestinian Authority over two years. The initiative is aimed at bolstering financial stability, enhancing democratic governance, and improving services to stimulate private sector growth.

“This program is designed to assist the Palestinian people in building a sustainable and secure future,” stated EU Mediterranean Commissioner Dubravka Šuica. Speaking after talks in Luxembourg with Palestinian Prime Minister Mohammad Mustafa, Šuica stressed that "a well-functioning and reformed Palestinian Authority must play a central role in the post-conflict governance of Gaza."

The package includes over €576 million in grants for projects across various sectors in Palestinian territories and €82 million directed to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA). An additional €400 million will be made available to the private sector through low-cost loans.

Meanwhile, Israel has confirmed striking Al-Ahli Hospital in northern Gaza, claiming the target was a Hamas command center embedded within the medical facility. Israeli authorities said they had issued evacuation warnings and took steps to minimize civilian harm prior to the attack.

Hamas condemned the strike, calling it “a new war crime” and part of a continued assault on Gaza’s healthcare infrastructure.

The conflict began on October 7, 2023, when Hamas launched a large-scale attack on southern Israel, killing 1,200 people, mostly civilians, and taking 251 hostages. While most hostages have been released through negotiations, 59 remain in captivity, with 24 believed to be still alive.

Gaza’s Health Ministry, run by Hamas, reports that over 50,000 Palestinians have been killed since the conflict began, though it does not distinguish between civilians and combatants in its count.