Palestine: double aid package from the EU. 50 million in direct aid and 400 million granted by the EIB

Brussels – A double round of aid to Palestine was announced by the European Commission. In New York, the European Investment Bank (EIB), together with the EU institution, announced a €400 million funding package for the Palestinian Monetary Authority (PMA). The aim is to support the Palestinian private sector. The EU Commission also announced €50 million in direct aid, i.e., physical goods, to tackle the crisis in Gaza and the West Bank. The latest round of humanitarian contributions brings the total for 2025 to €220 million: an absolute record, due to the worsening situation in the area.

While on the one hand, it will be material aid, the financial instrument presented by the EIB will be more complex. The aim is to give small Palestinian businesses access to bank credit. For this reason, the European Commission and the EIB are committed to guaranteeing subsidised loans to Palestinians through local banks. The aim is to revive private investment.

The current situation certainly does not facilitate economic initiative. By the Union’s own admission, the famine in the Strip is generated by the “intensified Israeli bombardment, including on tents, hospitals, and schools, the continuous clashes on the ground and the recurring forced displacement orders.” Some of the funds coming into the area will also go to Palestinians in the West Bank, as “the rapid expansion of settlements and their legalisation, which increases the risk of de facto annexation, Israeli military operations and persistent attacks by Israeli settlers against Palestinian communities” make economic development in the area impossible.