EU Reconsiders Its Financial Aid To The Palestinian Authority

(Meeting between EU Foreign Policy Chief Catherine Ashton and PA President Mahmoud Abbas in the West Bank city of Ramallah in June, Photo credit:  Issam Rimawi/Flash90)

(\Meeting between EU Foreign Policy Chief Catherine Ashton and PA President Mahmoud Abbas in the West Bank city of Ramallah in June, Photo credit: Issam Rimawi/Flash90

Earlier this week, a European Union official in Brussels declared that the union could cut off its financial aid to the Palestinian Authority if ongoing peace talks with Israel fail. The question was raised at a meeting last Tuesday, suggesting that funds could be redirected to other countries in the region, such as Syria.

The statement was reported by Haaretz and the official stated that the financial aid established through the Oslo Accords of September 1993 only ensures the establishment of a future Palestinian state. But if the talks ultimately fail and a Palestinian state does not emerge, the funds, 300 million euros each year, would not have met their purpose. In this case, The European Union would consider relocating its funding efforts.

The reconsideration would yield dramatic consequences for the Palestinian Authority and also for Israel. Without the funds provided by the EU, the Palestinian Authority would cease to function, and Israel would struggle to find a means to replace the EU’s support. Israel would have to scrape together an alternative means to maintain economic and administrative infrastructures in the West Bank. Regarding security, the absence of funding would hold serious repercussions for PA security forces that work in cooperation with Israel to maintain order in the West Bank.

This declaration poses a significant development in the midst of stagnating talks that began last July and are supposed to go on for nine months. The EU has only manifested symbolic support thus far without pursuing an active stance in the American-brokered negotiations. Instead, the union is focused on securing an agreement with Iran on its nuclear program. This recent statement can be seen as an attempt by the EU to reaffirm its position and apply pressure on both sides to make concessions and advance the talks to documented agreements.

The financial aid debacle will resurface again in EU deliberations if an agreement isn’t reached before the end of the talks. So far, a decision hasn’t been reached, but EU representative to the talks, Andreas Reinicke, remains optimistic regarding their progress.

Trackbacks

  1. […] A European Union official in Brussels declared that the Union could cut off its financial aid to the Palestinian Authority if ongoing peace talks with Israel fail. The question was raised at a meeting, suggesting that funds could be redirected to other countries in the region, such as Syria. In the statement, as reported by Haaretz, the official  explained that the financial aid established through the Oslo Accords of September 1993 only ensures the establishment of a future Palestinian state. But if the talks ultimately fail and a Palestinian state does not emerge, the funds, 300€ million each year, would not have met their purpose. In this case, the European Union would consider reassigning its funding efforts. Read more about the EU aid to Palestine. […]

  2. […] A European Union official in Brussels declared that the Union could cut off its financial aid to the Palestinian Authority if ongoing peace talks with Israel fail. The question was raised at a recent meeting, and it was suggested that funds could be redirected to other countries in the region, such as Syria. The statement, reported by Haaretz, revealed that the financial aid established through the Oslo Accords of September 1993 only ensures the establishment of a future Palestinian state. But if the talks ultimately fail and a Palestinian state does not emerge, the funds, 300 million euros each year, would not have met their purpose. In this case, The European Union would consider relocating its funding efforts. Read more about the European Union stance on Palestine. […]

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