Germany considers provision of assistance for Palestinians in the occupied West Bank
The Palestinian Authority, led by President Mahmoud Abbas in Ramallah, is currently under immense political and financial pressure, as stated by Development Minister Reem Alabali Radovan. This pressure stems from the complete blockage of tax funds that are legally due to the Palestinians since May.
The situation has prompted calls for aid from Germany and discussions within the EU. Alabali Radovan announced that Germany will examine additional aid for the Palestinian Authority's budget and discuss additional aid within the EU, in light of the current crisis. She proposed immediate German aid of 30 million euros.
The aid, if approved, is planned to be paid out via a EU mechanism and used for salaries in the health and education sectors in the West Bank. The European Union links its support for the Palestinian Authority via the so-called PEGASUS mechanism to reforms and sets rules for controlling the use of funds.
However, the Union (CDU/CSU) party in the German Bundestag currently rejects a direct donation of 30 million euros to the Palestinian Authority. They want to ensure that the funds do not support projects that endanger Israel's security and require clear transparency about the use of the funds before approval. Alexander Hoffmann, chairman of the CSU parliamentary group, has stated that there is a need for clarification regarding these funds.
The tax agreement for Israel to collect taxes and customs duties in the occupied West Bank and Gaza Strip and transfer them to the Palestinian Authority dates back to the Oslo peace process in the 1990s. However, Israel has withheld these funds since May, leading to an "acute financial crisis" for the Palestinian Authority, according to a spokeswoman for the Federal Ministry for Economic Cooperation and Development.
Foreign Minister Johann Wadephul (CDU) had already called on the Israeli government to continue transferring the tax funds. Experts fear that the Islamist Hamas could gain political capital from a potential collapse of the Palestinian Authority. A collapse could open up space for further instability in the West Bank, according to Development Minister Reem Alabali Radovan.
Hoffmann also stressed the importance of humanitarian aid, but emphasised that it must be clear where the money will go and this should be clarified before the funds are released. The deputy government spokesman, Sebastian Hille, said that they are waiting to see what happens in the Bundestag.
The proposed aid is intended to compensate for revenue losses due to Israel's blockade. The situation remains uncertain as a final decision on the aid has not been made yet. 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 regarding the aid.
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