Examining Potential Assistance for Palestinians in the West Bank by Germany
The German government, led by Development Minister Reem Alabali Radovan (SPD), has announced plans to provide 30 million euros in aid to the Palestinian Authority. This move comes as the Palestinian Authority faces an "acute financial crisis" due to Israel's blocking of tax funds since May.
The proposed aid is intended to be used for paying salaries in the health and education sectors in the West Bank via a mechanism of the European Union. Alabali Radovan has emphasised that Germany will also examine additional aid for the Palestinian Authority's budget and discuss this within the EU.
Foreign Minister Johann Wadephul (CDU) has urged the Israeli government to continue transferring the tax funds that are rightfully due to the Palestinians. Meanwhile, Alabali Radovan has warned that a collapse of the Palestinian Authority could open up space for further instability in the West Bank.
The European Union supports the Palestinian Authority through a mechanism called PEGASE, which is linked to reforms and sets rules for controlling the use of funds. However, the CDU/CSU parliamentary group currently blocks the payment, citing the need for clarity on the specific projects funded and ensuring that funds do not endanger Israel's security.
Alexander Hoffmann, CSU parliamentary group leader, has stated that there is a need for clarification regarding these funds, and that humanitarian aid should be clear about where the money will go. He also emphasised that projects that endanger Israel's security must be clearly excluded.
The Ministry of Development is in close coordination with the Federal Chancellery, the Foreign Office, and the Federal Ministry of Finance regarding the aid. The deputy government spokesman, Sebastian Hille, says that they are waiting to see what happens in the Bundestag.
It is important to note that the tax agreement between Israel and the Palestinian Authority dates back to the Oslo Peace Process in the 1990s. Experts fear that the Islamist Hamas could gain political capital from such a situation, potentially leading to further instability in the region.
As of mid-September 2025, the matter remains under discussion without a final decision. The German government's decision on the aid is eagerly awaited, as it could provide much-needed relief to the Palestinian Authority and help maintain stability in the West Bank.
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