Assessing potential support for Palestinians residing in the West Bank by Germany
The Palestinian Authority is currently experiencing an acute financial crisis, and the European Union (EU) and Germany are discussing potential additional aid to alleviate the situation.
According to reports, Development Minister Reem Alabali Radovan of Germany has proposed a 30 million euro emergency aid for the Palestinian Authority, primarily intended for salary payments in the health and education sectors in the West Bank. This proposal is under consideration, but a final decision has yet to be made.
Israel has withheld tax revenues from the Palestinian Authority since May 2021. This move has been a source of concern for many, including German politician Alabali Radovan, who urged Israel in late August to resume the transfer of these funds. In early August, Johann Wadephul (CDU) made a similar call to the Israeli government.
The deputy government spokesman, Sebastian Hille, has stated that they are waiting to see what happens in the Bundestag before making a decision. Alexander Hoffmann, CSU parliamentary group leader, has emphasized the need for clarification regarding these funds, critically viewing the exclusion of projects that could potentially threaten Israel’s security.
The proposed aid, if approved, would be paid out via a mechanism of the EU, such as the Pegase mechanism. This system provides support to the Palestinian Authority, but is linked to reforms and includes rules for controlling the use of funds. The EU, like Germany, is keen to ensure that the aid goes directly to its intended recipients and does not fund projects that could jeopardize Israel's security.
Experts fear that a collapse of the Palestinian Authority could lead to further instability in the West Bank. This is particularly concerning given the potential for the Islamist Hamas to gain political capital from such a situation.
The development ministry is in close coordination with the Federal Chancellery, the Federal Foreign Office, and the Federal Ministry of Finance to ensure a comprehensive and well-considered approach to this issue. Discussions about additional aid for the Palestinian Authority within the EU are ongoing, and the hope is that a decision will be reached soon to help alleviate the financial crisis facing the Palestinian Authority.
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