European Union ‘immediately’ suspends hundreds of millions in aid for Palestinian authorities

Queries about what the move entailed and how extensive its impact on Palestinian aid would be weren’t immediately answered.

Varhelyi said that “as the biggest donor of the Palestinians, the European Commission is putting its full development portfolio under review,” which he said amounted to €691 million (US$730 million).

Varhelyi said that the measures include that “all payments (be) immediately suspended. All projects put under review. All new budget proposals … postponed until further notice.”

The EU says it is the biggest donor to the Palestinian people and has been advocating for years for the two-state approach that has guided international diplomacy since the 1993 Oslo peace accords between Israel and the Palestine Liberation Organization.

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“There can be no business as usual,” Varhelyi said.

“The foundations for peace, tolerance and coexistence must now be addressed. Incitement to hatred, violence and glorification of terror have poisoned the minds of too many,” the commissioner wrote.

During an earlier briefing on Monday, the European Commission sought to draw a clear line between Hamas, which it considers a terrorist organisation, and the Palestinian people, who are in need of humanitarian aid.

According to the bloc, it has provided humanitarian aid to help meet Palestinians’ basic needs since 2000 through the European Commission’s humanitarian aid department (ECHO) and the UN Office for the Coordination of Humanitarian Affairs (OCHA). Since 2000, ECHO has provided €700 million of humanitarian aid to Palestinians in the Gaza Strip and the West Bank.

Like the European Commission, development minister Svenja Schulze said in a statement that Germany took great care that its aid for Palestinians “serves peace and not the terrorists.”

“But these attacks on Israel are a terrible watershed, so we will review our whole commitment to the Palestinian areas,” she added.

Schulze said Germany wants above all to discuss with Israel “how we can best serve peace in the region and security for Israel with our development projects.” She noted that Israel also has an interest in Palestinians being able to live in long-term stability, and said Germany will also coordinate with its international partners.

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Germany is not suspending the humanitarian aid it provides separately via international non-governmental organisations and the United Nations, the Foreign Ministry said. Ministry spokesman Christian Wagner said on Monday that much of the €72 million pledged this year has been paid out, and payments will continue because they support “life-saving work.”

Austrian Foreign Minister Alexander Schallenberg told Oe1 radio on Monday that all development aid payments will be “put on ice for now.” He put the funds affected at about €19 million.

He said Austria will review all projects with the Palestinian areas and consult its international partners on further steps.