The European Union has long been the largest provider of foreign aid to the Palestinian people, the European Parliamentary Research Service informs.
The EU allocated €2.2 billion in bilateral aid to the Palestinians between 2014 and 2020, with aid under the European Joint Strategy for 2021-2024 totalling roughly €1.18 billion.
Aid to Palestine consists of various financial instruments, and most of it falls under the Neighbourhood, Development and International Cooperation Instrument (NDICI) for 2021-2027. This includes establishing an administrative structure, building new infrastructure and supporting civil society.
According to the European Commission, since 2021, 681 million euros of the 1.18 billion, planned for 2021-2024, have already been approved, with 218 million euros still to be spent.
The EU allocated more than €26.5 million in humanitarian funding for Palestinians in 2022, according to the European Commission’s Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO). For 2023, the EU allocated €28 million for humanitarian aid to Palestinians in need.
However, Hamas’s surprise attack on October 7 and Israel’s retaliatory bombardments led to a humanitarian disaster for Palestinians living in the Gaza Strip. In response, the EU sharply increased aid to Palestinians to €103 million for 2023. As a result, they can participate in the Horizon Europe and Erasmus+ programmes, and are also eligible for the Interreg NEXT programme for the Mediterranean basin. Moreover, Palestine is now a beneficiary of the food and resilience facility.
The European Commission reviewed all financial assistance, except humanitarian support, for feasibility and risks. Funds allocated for projects that are not feasible will be reallocated to other initiatives in the Palestinian territories.
The Commission also discussed additional measures, such as the inclusion of clauses prohibiting incitement in all new contracts. The European Parliament called on the Commission to reassess the region’s humanitarian aid needs to ensure that EU funding continues to reach those in need of assistance.
