WRITTEN QUESTION P-2402/02 by Armin Laschet (PPE-DE) to the Commission. Direct aid of EUR 10 million per month to the Palestinian Authority.
Date: 2002-07-30
Institutions: European Parliament, Provisional data
Subjects: EU aid, EU relations, Israel, Palestine, budget financing, budgetary resources, economic aid, international affairs

12.12.2002

EN

Official Journal of the European Communities

C 309 E/231

Further information about food irradiation is available via the following web site of DG Health and
Consumer Protection of the Commission: http://europa.eu.int/comm/food/fs/sfp/sfp_index_en.html.

(1) OJ C 174, 20.7.2002.

(2002/C 309 E/263)

WRITTEN QUESTION P-2402/02

by Armin Laschet (PPE-DE) to the Commission

(30 July 2002)

Subject: Direct aid of EUR 10 million per month to the Palestinian Authority

A financial agreement for the payment of EUR 10 million per month in direct aid, concluded on 31 May
2001 between the European Commission and the Palestinian Finance Ministry, is due to expire on 31 July
2002. Has it been extended beyond that date?

Is it true that the Israeli Government is prepared to resume the withheld transfer payments of tax and
import duties, which it suspended in 2000, to the Palestinian Authority?

the Commission continue to provide flat-rate aid, even if

Will
EUR 40 million to the Palestinian Authority in the near future?

Israel pays an initial

instalment of

Answer given by Mr Patten on behalf of the Commission

(13 September 2002)

On 27 February the MED Committee approved EUR 120 million in direct budgetary assistance (DBA) for
the Palestinian Authority. Accordingly, on 26 March the Commission granted the Palestinian Authority the
first EUR 50 million under DBA III to cover payments over the period March through July. A financing
agreement was signed with the Palestinian Authority the same day. The five EUR 10 million tranches have
already been disbursed.

On 7 August the Commission approved a further EUR 30 million under DBA IV for the period August
through October. This sum will be the subject of a rider to the DBA III financing agreement.

According to reports in the international press, the Israeli government announced, on 24 July, that it
would shortly be releasing some ILS 210 million (about USD 44,7 million) in tax revenue withheld from
the Palestinian Authority since the second Intifada started in September 2000. The Jerusalem Delegation
tells the Commission that the Israeli government has released an initial tranche of ILS 70 million (about
USD 14,8 millions) and that the Israeli government and the Palestinian Authority are now discussing the
payment of the balance.

The Israeli government is still holding on to almost USD 600 million in tax transfers belonging to the
Palestinian Authority and has not agreed to resume monthly transfers equivalent to USD 30 million.

In this situation, and given the Palestinian Authority’s worsening revenue crisis, the Commission will be
continuing its assistance to the Authority. The Union’s budget aid is, it should be pointed out, subject to
conditions,
judicial and financial reforms, and these conditions are regularly
reviewed and updated.

including administrative,