WRITTEN QUESTION P-1437/03 by Armin Laschet (PPE-DE) to the Commission. Direct payments of EUR 10 million per month in EU aid to the Palestinian Authority.
Date: 2003-04-15
Institutions: European Parliament, Provisional data
Subjects: EU aid, Palestine, aid policy, suspension of aid

3.4.2004

EN

Official Journal of the European Union

C 84 E/723

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(2004/C 84 E/0812)

WRITTEN QUESTION P-1437/03

by Armin Laschet (PPE-DE) to the Commission

(15 April 2003)

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

Is it correct that since 2002 the Commission has ceased payment of the monthly direct budgetary aid of
EUR 10 million to the Palestinian Authority?

Is this cessation of direct budgetary aid a temporary measure or has the Commission now decided to end
the monthly lump-sum payments once and for all?

What were the Commission’s reasons for ending these monthly payments?

Answer given by Mr Patten on behalf of the Commission

(27 May 2003)

The primary objective of Union budgetary support to the Palestinian Authority (PA) has been to mitigate
the effects of the freeze of revenue transfers by the Government of Israel, thus contributing to the
functioning of the PA administration and to the restoration of the conditions necessary for peace once the
present crisis is over.

The Union’s support has in the short term helped to avert the collapse of the institutional structures within
the Palestinian Territories. Union’s support has also been tied to conditions which have promoted reform
in the PA, in particular by contributing to the consolidation and transparency of the PA’s public finances.

The importance of the Union’s assistance to the PA was fully recognised by the international community,
most recently at the Ad Hoc Liaison Committee meeting of international donors (including the European
Union, United States, Norway, and the World Bank) in London on 18/19 February 2003.

Whereas the economic effects of the crisis are still putting a strain on the PA’s revenues, the Israeli
government has now resumed regular revenue transfers. So far, four consecutive monthly payments have
been made by the Israeli government for October 2002-January 2003, paid in December 2002-March
2003. In addition, the Government of Israel has begun repaying arrears which have accumulated since
December 2002. As of March 2003 a total of EUR 295 million has been paid over to the PA.

Consequently it has been possible for the Union to redirect its assistance to the PA. The current budgetary
assistance programme will therefore be replaced by other forms of aid as announced by the Commission
on 30 April 2003.

If Israel were to freeze transfers, a decision to resume direct budgetary support may need to be considered
on the basis of an assessment of the fiscal outlook of the PA.

Payment of the final instalments of monthly budgetary support relating to November and December of
2002 will be made to the PA in the coming weeks.

A report summarising the history of Commission Budgetary Assistance in favour of the PA is sent direct to
the Honourable member and to Parliament’s Secretariat.