Delegation News

The European Union and the Palestinian Authority have signed a €158.5 million Financing Agreement in support to the Palestinian Authority's recurrent expenditures for 2010. The funds will be channeled to the payments of salaries and pensions and the social protection programme through PEGASE, the European mechanism for support to the Palestinians.

 

A delegation press release said the Agreement, signed on 19 January, is designed both to help sustain the public services that the PA provides to the Palestinian people and to strengthen the institutions of the future Palestinian state.  “This agreement comes at a time where the Palestinian people are in need of all kind of continuous support in order to be able to build the state institutions and develop its sectors. Such agreements also help the Palestinian people to face the obstacles they live with and provide the possibilities to continue in the development process,” said Salam Fayyad, Palestinian Prime Minister.

 

This first package of financing will enable the Palestinian Authority to sustain its operations by contributing to the payment of civil servants' salaries and pensions, both in Gaza and the West Bank. It will provide support to the most vulnerable Palestinians through regular contributions to social allowances paid to vulnerable families through the Ministry of Social Affairs' social protection programme. Most of the funds will be disbursed in the first half of the year.

 

This financing complements a package of €66 million of support for the UNRWA General Fund, to ensure the delivery of public services to Palestine refugees. The European Union and the Palestinian Authority will soon launch formal discussions on the details of the second financing package of €71 million.