Exploring potential financial assistance for Palestinians residing in the West Bank by German authorities
The German federal government's planned payment of 30 million euros to the Palestinian Authority has been temporarily halted by the CDU/CSU parliamentary group due to unresolved questions about the use of the funds.
Alexander Hoffmann, the CSU parliamentary group leader, has expressed the need for clarification regarding these funds, emphasising that humanitarian aid is important, but it must be clear where the money goes.
The aid, planned to be paid out via a mechanism of the EU and used for salary payments in the health and education sectors in the West Bank, is intended to partially compensate for lost tax revenues blocked by Israel.
The Palestinian Authority is currently in an "acute financial crisis," and a collapse could open up space for further instability in the West Bank. Experts fear that the Islamic Hamas could gain political capital from such a situation.
The European Union provides support to the Palestinian Authority through the PEGASUS mechanism, which is linked to reforms and has rules for controlling the use of funds. Germany will examine additional aid for the Palestinian Authority's budget and consult on additional aid within the EU.
Foreign Minister Johann Wadephul (CDU) has already urged the Israeli government to continue transferring the tax funds. Development Minister Reem Alabali Radovan, from the SPD, has proposed this immediate aid of 30 million euros for the Palestinian Authority.
In a previous statement, Alabali Radovan also urged Israel to pay the withheld tax funds to the Palestinian Authority. The tax agreement between Israel and the Palestinian Authority dates back to the Oslo peace process in the 1990s.
The Federal Ministry for Economic Cooperation and Development is in close coordination with the Federal Chancellery, the Federal Foreign Office, and the Federal Ministry of Finance. A final decision on the proposed German aid of 30 million euros has not yet been made.
Deputy government spokesman Sebastian Hille said they are waiting to see what happens in the Bundestag. The Palestinian Authority is under unprecedented political and financial pressure, and a final decision on the aid has not yet been made.
The situation remains fluid, and discussions are ongoing. The CDU/CSU parliamentary group has not given up on the plan, and no final decision date has been announced yet.
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