European Union Suspends Aid to Palestinian Authorities Amid Hamas Attacks on Israel

October 9, 2023
1 min read
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In an unprecedented move, the European Union declared on Monday that it is “immediately” suspending hundreds of millions of euros intended for Palestinian authorities. The decision comes in response to what EU Commissioner Oliver Varhelyi described as the “scale of terror and brutality” evident in the attacks on Israel by Hamas over the weekend.

Germany and Austria, two key European Union member states, followed suit by announcing analogous measures. This development reflects the growing concern among European nations regarding the escalating tensions in the region.

Varhelyi took to Twitter to underscore the situation’s urgency, stating, “We need action, and we need it now.” He went on to clarify that the EU stands firmly in support of Israel’s right to defend itself, provided it remains within the parameters of international law.

Interestingly, Varhelyi’s announcement regarding the suspension of aid came shortly after EU officials emphasized that no EU funds were directed to Hamas, a group the EU has labelled a terror organization. The EU’s relationship with Hamas has been strained for over a decade, with contacts frozen for 16 years.

As the European Commission remains the most significant donor to the Palestinians, this halt could have far-reaching consequences. Varhelyi indicated that the commission is undergoing a comprehensive review of its development portfolio concerning the Palestinians, currently valued at approximately 691 million euros ($730 million). The measures instituted dictate the immediate suspension of all payments and a pause in any new budgetary proposals.

The EU has a long history of endorsing the two-state approach to peace in the region, which has been the basis of international diplomacy since the 1993 Oslo Accords. Yet, with the current state of affairs, Varhelyi believes there is an urgent need to rebuild the “foundations for peace, tolerance, and coexistence.”

This commitment to peace is evident in the EU’s past actions. Since 2000, through the European Commission’s humanitarian aid department (ECHO) and the U.N. Office for the Coordination of Humanitarian Affairs (OCHA), the EU has allocated 700 million euros in humanitarian aid to Palestinians in the Gaza Strip and the West Bank.

Germany’s Development Ministry confirmed that while there isn’t direct financing to the Palestinian Authority, it had pledged 250 million euros in aid. Austria, meanwhile, is freezing roughly 19 million euros intended for Palestinian development aid.

In conclusion, this suspension underscores the EU’s commitment to peace and stability in the region. By withholding aid, the EU, Germany, and Austria are sending a strong message against the actions of Hamas while still expressing their desire to support the Palestinian people’s humanitarian needs. As tensions continue to rise, international stakeholders await further deliberations to navigate a path forward.

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