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The European Union (EU) has committed €1.6 billion in financial aid aimed at strengthening the Palestinian Authority (PA) and supporting crucial development projects in Gaza, Jerusalem, and the West Bank. Over the course of two years, the EU plans to allocate more than one-third of the funds as direct budget support to the Palestinian Authority. The initiative is designed to help improve democratic institutions, stabilize public finances, and encourage growth within the private sector.

EU Commissioner Dubravka Šuica emphasized that this financial support is a vital step towards building a sustainable and functional future for Palestinians. She highlighted the importance of effective governance, economic recovery, and resilience in the private sector to support long-term stability in the region. Šuica also stressed that the PA must play a central role in the administration and reconstruction of Gaza post-conflict, outlining the EU’s belief that a reformed PA is essential for the recovery of Palestinian territories.

This announcement came after Šuica’s meeting with Palestinian Prime Minister Mohammad Mustafa in Luxembourg, where discussions centered around the need for continued international support and political reforms within the PA to enable effective recovery efforts.

EU Allocates €576 Million in Grants and Loans to Support Development Projects

As part of its ongoing commitment to Palestinian development, the EU has allocated €576 million in grants for various projects across Palestinian territories. A key beneficiary of these funds is the United Nations Relief and Works Agency (UNRWA), which will receive €82 million to provide vital support to Palestinian refugees in Gaza and the West Bank.

Additionally, the EU will offer up to €400 million in low-interest loans to foster private sector growth and economic development. This financial package is seen as an essential step toward boosting economic development, especially given the ongoing humanitarian challenges and political instability in the region.

The EU, which remains the largest donor to the Palestinian cause, reaffirmed its commitment to long-term development projects that will not only improve living conditions but also contribute to the region’s political stability. Despite the ongoing violence in Gaza, the EU has emphasized its determination to continue investing in critical services and projects aimed at fostering peace and stability.

EU Pushes for Reforms Amid Gaza Conflict

The EU’s financial commitment comes amid heightened violence in Gaza, which has led to increased humanitarian concerns. The region is grappling with severe challenges, both political and economic, as military conflicts continue to escalate. However, the EU’s pledge of continued support sends a strong message about the importance of investing in sustainable solutions despite the ongoing tensions.

Brussels has made it clear that it views governance reforms within the Palestinian Authority as crucial for the region’s recovery. The EU’s insistence on a reformed PA reflects the belief that a functioning government is essential for guiding Gaza’s post-conflict administration and rebuilding efforts.

Israeli Airstrike Targets Gaza Hospital Amid Escalating Conflict

In a related development, Israeli forces launched an airstrike on Al-Ahli Hospital in Gaza City on Sunday, hitting the facility before sunrise. The attack followed an evacuation warning issued earlier by the Israeli military, and Gaza’s Health Ministry reported that one patient died during the rushed evacuation.

Israel stated that it had targeted a Hamas command center located within the hospital compound, emphasizing that efforts were made to minimize harm before launching the strike. Hamas, however, accused Israel of committing another war crime against Gaza’s health infrastructure, further escalating the tensions in the region.

The hospital bombing occurred as part of a broader Israeli military offensive across northern Gaza. The ongoing conflict began after Hamas launched an attack on southern Israel on October 7, 2023, resulting in the deaths of 1,200 people, most of whom were civilians, and the kidnapping of 251 individuals. Despite negotiations that led to the release of some hostages, 59 remain in captivity, with 24 confirmed alive.

The Gaza Health Ministry reports that more than 50,000 Palestinians have died in the ongoing conflict, though it has not distinguished between civilians and fighters in its death toll figures.

The EU’s Commitment to Long-Term Stability

Despite the ongoing violence and uncertainty, the EU remains committed to supporting Palestinian development and political stability. The €1.6 billion financial package is a crucial step toward ensuring that Palestinian institutions are strengthened and able to manage future reconstruction and governance efforts. The EU’s focus on governance, economic recovery, and private sector resilience reflects a broader strategy to ensure long-term peace and stability in the region.