Source: European Parliament
The Letter of Intent with the Palestinian Authority [1](PA) signed on 19 July 2024 consisted of: (i) a short-term emergency financial support of EUR 400 million of grants and loans, (ii) a multi-year comprehensive programme for Palestinian recovery and resilience.
As part of the EU emergency support package to the PA of EUR 400 million, the Commission has disbursed EUR 382.5 million between July and November 2024. The pending tranche of EUR 17.5 million was disbursed in February 2025.
All the disbursements were linked to PA actions identified in the Letter of Intent. The PA reached all prior actions from the Letter of Intent. The Commission and the PA have agreed on the Reform Matrix[2] that will be at the core of the comprehensive programme for Palestinian recovery and resilience.
The Reform Matrix, anchored on the PA’s own reform agenda, will be the basis for future disbursements under the comprehensive programme.
The multiannual comprehensive support programme for Palestinian recovery and resilience for 2025-2027, was announced on 14 April 2025 during the High-Level Political Dialogue between the EU and the PA. It consists of up to EUR 1.6 billion: a grant amount of up to EUR 1.196 billion as well as guarantees from the Commission to enable EUR 400 million loans by the European Investment Bank.
The milestones for future disbursements will be identified in the framework of the financing agreement between the Commission and the PA to be signed in June 2025.
The Commission is also in discussions with other donors and partners, as their active participation and involvement is crucial for the sustainability of the support to the PA.
- [1] https://enlargement.ec.europa.eu/document/download/597ce07b-fb47-4bd2-b7ef-46c4401487de_en?filename=Letter%20of%20Intent%20-%20EU%20PA%20final.pdf.
- [2] The Reform Matrix has been developed in close cooperation between the PA and the Commission and based on the PA’s own reform agenda. It includes important fiscal, economic and governance reforms, as well as social protection.