The European Union announced today, Thursday, the provision of 122.5 million euros in short-term emergency financial support to Palestine.

The European Union explained in a press release that the support includes 38.5 million euros in the form of grants through the PEGASE mechanism to pay the salaries of civil service employees in the West Bank, and 84 million euros through credit facilities for the Palestinian Monetary Authority, provided by the European Investment Bank.

He pointed out that this payment is the second contribution within the short-term emergency financial support package of 400 million euros announced by the European Union in July 2024.

He explained that this package is part of an agreed strategy between the European Union and Palestine to address the critical financial and budgetary situation of the Palestinian government and economy. It is a combination of grants and loans that will be disbursed in three installments, as the first installment of 150 million euros was already implemented last July.

“We are facing unprecedented challenges and critical junctures. This is yet another reason for us to step up our engagement and proactively support our partners in preserving hope and protecting the prospects for peace and security in this region,” said EU Representative Alexander Stutzmann.

He added: We have worked closely with Prime Minister Mustafa and his government to develop this short-term emergency financial support package based on an agreed strategy that is consistent with the Palestinian National Reform Agenda.

He pointed out that the Palestinian government had achieved great accomplishments in the past two months and maintained its services in light of a difficult reality, expressing his aspiration to continue working together with it.