This initiative, valued at up to €1.6 billion, was announced during the inaugural High-Level Political Dialogue between the European Union (EU) and the Palestinian Authority. The programme underscores the EU's steadfast support for the Palestinian people and its dedication to achieving a sustainable peace through the Two-State solution.
Programme Overview
The Comprehensive Support Programme is set to span from 2025 to 2027, structured around three pivotal pillars:
1. Support to Services for Palestinian People
Approximately €620 million in grants will be directed as direct assistance to the Palestinian Authority's (PA) budget. This represents an increase from previous years, aimed at addressing urgent public administration needs and ensuring the continued delivery of essential services to the Palestinian populace. The EU's financial assistance will be contingent upon the PA's progress in key reforms, including fiscal sustainability, democratic governance, and infrastructure development, as outlined in the Reform Matrix agreed upon in November 2024.
2. Recovery and Stabilization in the West Bank and Gaza
With a proposed allocation of €576 million in grants, this pillar focuses on fostering economic recovery and resilience in the West Bank, East Jerusalem, and Gaza. The initiative will prioritize sectors such as water, energy, and infrastructure. Additionally, €82 million per year will be allocated to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) to maintain essential services for Palestinian refugees.
3. Support for the Private Sector
The European Investment Bank (EIB) will provide loans up to €400 million to finance the Palestinian private sector, pending approval from the EIB's Governing Bodies. This financial support aims to stimulate private sector growth and development.
Mobilizing International Support
The EU will also establish a dedicated Palestine Donor Platform to facilitate international support and ensure transparency in the programme's implementation. This platform will serve as a forum for the Palestinian Authority to present its Reform Agenda and coordinate international efforts for Gaza's recovery and reconstruction.
Background and Strategic Intent
In July 2024, the EU and the Palestinian Authority signed a Letter of Intent outlining a strategy to address the PA's critical budgetary and fiscal challenges. This strategy included an emergency financial support of €400 million, disbursed between July 2024 and February 2025, and the newly announced Comprehensive Programme.
"The EU is determined to support the Palestinian Authority in its reform efforts. This will reinforce the PA's ability to meet the needs of the Palestinian people in the West Bank and prepare it to return to govern Gaza once conditions allow." - Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission
The EU remains the largest provider of external assistance to the Palestinians, with a bilateral allocation of approximately €1.36 billion for 2021-2024, of which over €1.043 billion has already been allocated.
This initiative reflects the EU's commitment to fostering stability and development in the region, aligning with its broader geopolitical objectives and humanitarian responsibilities.
