The European Union is making a contribution of approximately €19.0 million to the payment of the October salaries and pensions of around 84,200 Palestinian civil servants and pensioners in the West Bank and the Gaza Strip. This contribution, which is channelled through the PEGASE[1] mechanism, is being funded by the European Commission (€13.8 million), the Government of Sweden (SEK 35.0 million or c.€4.0 million) and the Government of the Netherlands (c.€1.2 million earmarked specifically to the PA salaries in the Justice sector).

"The European Union is aware of how deep and complex the PA's recent financial crisis is. In this context, we will continue our financial support and remain one of the most reliable and committed donors in order to secure the PA’s fiscal sustainability and protect its institution-building achievements", said the EU Representative Mr. John Gatt-Rutter". This contribution is part of our 2012 commitment and I would like to thank the Governments of the Netherlands and Sweden for their respective contributions and for entrusting the PEGASE Direct Financial Support mechanism with channelling their funds. I would also like to call on other donors to step up their financial efforts to preserve the PA's ability to deliver services to the Palestinian people ", he added.

Background

Most of the European Union's assistance to the Palestinian Authority is channelled through PEGASE, the financial mechanism launched in 2008 to support the PA Reform and Development Plan (2008-2010) and the subsequent PA Palestinian National Plan (2011-2013). As well as helping to meet a substantial proportion of its running costs, European funds support major reform and development programmes in key ministries, to help prepare the PA for statehood in line with the plan put forward by Prime Minister Salam Fayyad in August 2009. Since February 2008, around €1.4 billion have been disbursed through the PEGASE Direct Financial Support programmes. In addition, the EU has provided assistance to the Palestinian people through UNRWA and a wide range of cooperation projects.

[1] Mécanisme Palestino-Européen de Gestion de l'Aide Socio-Economique (PEGASE)

Contacts: The Office of the European Union Representative: Antonia Zafeiri (02 5415 859, 0548 024 915) & Shadi Othman (02 5415 867, 0599 673 958) http://eeas.europa.eu/delegations/westbank/