Source: European Parliament
The EU bilateral allocation for Palestine[1] under the Neighbourhood, Development and International Cooperation Instrument — Global Europe amounted to approximately EUR 1.36 billion for 2021-2024.
During this period, commitments to the Mécanisme Palestino-Européen de Gestion de l’Aide Socio-Économique (PEGASE mechanism), for direct financial support to the Palestinian Authority (PA), amounted to EUR 516.75 million (yearly average approximately EUR 130 million).
The overall EU funding for 2021-2024 supported the financing of the most essential services for Palestinians, contributed to the PA’s recurrent expenditures, via PEGASE, by supporting payments of salaries for civil servants, social allowance payments, funding for the East Jerusalem hospitals, and also supported various development projects and financial assistance to the United Nations Relief and Works Agency for Palestine Refugees .
The EU has never contributed to the Palestinian ‘Martyr Fund’ of the PA, which was discontinued with the new social protection law entering into force on 10 February 2025[2].
The PA was running the Prisoner’s Fund off-budget, while PEGASE contributed to the budget of the PA. The Commission’s extended screening vetting system ensured that no EU funding went to the beneficiaries of the Prisoners Fund. The detainees and families (a list is provided by the PA) were categorically excluded from any payment made through PEGASE.
Finally, Member States’ contributions to the EU budget are not earmarked for specific purposes. Instead, they are pooled and allocated proportionally across all expenditure categories.
- [1] This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue.
- [2] Decree-Law No. (4) of 2025, which amends Decree-Law No. (1) of 2019 regarding the Palestinian National Economic Empowerment Institution.