JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Palestine Progress in 2014 and recommendations for actions Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Implementation of the European Neighbourhood Policy in 2014
Date: 2015-03-25
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Palestine, civil society, democratisation, freedom of assembly, freedom of expression, freedom of religious beliefs, higher education, human rights, protection of minorities, public debt, torture, women's rights













EUR-Lex - 52015SC0071 - EN











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52015SC0071

JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Palestine Progress in 2014 and recommendations for actions Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Implementation of the European Neighbourhood Policy in 2014 /* SWD/2015/0071 final */









1.         OVERALL ASSESMENT AND
RECOMMENDATIONS FOR ACTION
This document reports on progress made
on the implementation of the EU-Palestinian Authority (PA) European
Neighbourhood Policy (ENP) Action Plan between 1 January and 31 December 2014.
Developments outside this period are taken into consideration where relevant.
This is not a general assessment of the political and economic situation in
Palestine.[1]
Information on regional and multilateral sector processes is contained in the
Partnership for Democracy and Shared Prosperity progress report.
It must, however, be noted that
circumstances have been such that any assessment must include a caveat to cater
for the unique context of occupation, which is clearly not ideal for reform.
The new High
Representative for Foreign Affairs and Security Policy/Vice President of the
Commission (HR/VP), Federica Mogherini, dedicated her first foreign visit to
meeting Palestinian and Israeli partners. In October 2014
HR/VP Catherine Ashton represented the EU at the international conference on
Reconstructing Gaza in Cairo, during which the EU pledged more than EUR 450
million in aid. The HR/VP met President Abbas on numerous occasions during
2014, including in Paris, Brussels and Cairo.
After direct peace negotiations broke
down in the spring, no progress was made on the Middle East Peace Process
(MEPP). The signing of the Beach Camp Agreement in April marked a step forward
in the intra-Palestinian reconciliation process. It led to the formation in
June of a National Consensus Government of independent technocrats,
headed by Rami Hamdallah, which is committed to the principles set out by
President Abbas in May 2011 (i.e. a two-state solution based on the 1967
borders, recognition of Israel’s legitimate right to exist, non-violence and
respect for previous agreements). The agreement provided for
effective rule over Gaza by the Palestinian National Consensus Government and
the holding of presidential and parliamentary elections across the Palestinian
territories, including East Jerusalem.
The armed conflicts in Gaza over the
summer constituted a major setback. With over 2 100 Palestinian and 71
Israeli casualties during 50 days of hostilities, the conflict was the third
and most deadly conflict in Gaza in the last six years. This and the additional
restrictions imposed by Israel in the West Bank under Operation ‘Brother
Keeper’ further aggravated the two major obstacles to progress already reported
in earlier progress reports: the Israeli occupation — particularly in Area C[2] — and
the PA’s continued de facto lack of authority over the Gaza Strip. These
factors severely limited the PA’s ability to carry out its governmental
responsibilities, even in the areas within its control.
Human rights issues continued to be a
matter of concern, despite some limited progress, such as the amendment of the
Penal Code on the issue of honour killing and the accession of Palestine to a
number of international conventions. In the West Bank, despite a relatively
positive environment, there has been a shrinking of democratic space with
complaints of arbitrary detention, torture and ill-treatment, as well as
reported violations of freedom of expression (undue pressure on journalists)
and assembly (violent dispersion of demonstrators). The socio-economic
vulnerability of women across Palestine was of concern. The death sentence
remained in use in Gaza and approximately 25 ‘suspected collaborators’ were
summarily executed in August. This was of particular concern, though it should
be noted that the Gaza Strip has, for the most part, not been under the PA’s
control.
The formation of the National Consensus
Government was expected to foster the necessary harmonisation of legislation
between Gaza and the West Bank, and the unification of their respective legal
systems. However, there were no tangible developments in this regard. A clear
delineation of responsibilities between the different institutions operating in
the justice sector was also lacking. Some progress was made in strengthening
the capacities and accountability of the police and civil defence, thanks
partly to European support.
The
Palestinian economy, which has been slowing down since 2013, entered recession
in 2014, due in part to the negative effects of the conflict in Gaza. The
restrictions imposed by the Israeli occupation, particularly in Area C,
remained the biggest obstacle to Palestinian socio-economic development. These
included the periodic with-holding of customs and tax revenues by the Israeli
authorities. Against this challenging backdrop, the PA achieved some results
such as: 
·      developing
local employment and training councils; 
·      endorsing
a new water law; 
·      approving
implementing regulations for the Public Procurement Law; 
·      progress
in reforming the energy sector;  
·      presenting
a number of sectoral strategies in the fields of export promotion, social
protection, environment, water and health.
The PA made considerable efforts to
maintain fiscal discipline, including by improving revenue collection, adopting
a zero net hiring policy and increasing fiscal cooperation with Israel.
However, in a difficult economic context, both the total and recurrent budget
deficits increased in 2014, highlighting the continued need for incisive
reforms to the civil service and pensions, and for additional efforts in the
fields of health referrals and electricity net lending.
Taken into account the particular
situation in 2014, including the armed conflicts and hostilities in the region,
and despite its limited ability to carry out its governmental responsibilities,
the PA made limited progress in implementing the ENP Action Plan. Achievements
were made in the capacity building and accountability of police and civil
defence services, in the area of fiscal discipline and with regard to some
sector-related issues, such as water and health.
Based on the assessment of the progress
made in 2014 on implementing the ENP in 2014, Palestine should focus its work
in the coming year on:
·        
pursuing
positive steps with a view to an early resumption of the Middle East Peace Process;
·        
advancing
intra-Palestinian reconciliation in line with the principles set out in
President Abbas’ speech of 4 May 2011 and taking back full governmental
responsibility in Gaza;
·        
holding
free and fair presidential and legislative elections;
·        
continuing
to promote, wherever possible, reform in the judicial and security sectors,
including through legislative measures, in line with chapter 5 of this report;
·        
adopting
a unified Penal Code which adheres to international human rights standards, and
strengthens legal guarantees for all fundamental freedoms; abolishing the death
penalty while fully abiding by the de facto moratorium on the death
penalty;
·        
clarifying
the responsibilities of the three main judicial institutions, namely the
Ministry of Justice, the Office of the Attorney General and the High Judicial
Council;
·        
further
consolidating progress in ensuring the accountability, integrity and
transparency of the public finance system;
·        
taking
steps towards civil service and pension reform and rationalising recurrent
expenditure by reducing non-wage costs in particular to ensure sustainability
over time and better targeting of social protection spending;
·        
continuing
to develop the necessary legal and institutional framework for an integrated
water and wastewater management system to ensure equitable service delivery and
resource sustainability throughout Palestine;
·        
developing
and implementing a policy to address violence against women and women’s
socio-economic vulnerability.
2.         POLITICAL
DIALOGUE AND REFORM
Deep and sustainable democracy
In April Hamas
and the Palestine Liberation Organisation (PLO) signed a new agreement on
reconciliation. In accordance with the agreement, a consensus government of
independent technocrats was formed in June under Prime Minister Hamdallah,
including four ministers from Gaza (Labour, Public Works, Justice and Women’s
Affairs). Other elements of the agreement included presidential and
parliamentary elections, no earlier than six months after the government’s
formation, while many of the most sensitive issues (including Hamas’s inclusion
within the PLO and the integration of respective security forces) were
entrusted to committees. In this context, the EU emphasised that full
democratic legitimacy and institutional sustainability can only be restored
through genuine democratic legislative and presidential elections throughout
Palestine. In the meantime, progress in returning the PA to Gaza was slow,
partly due to complex legal, political and practical issues but primarily as a
result of the Israeli operation, which lasted 50 days in July and August. Since
then, the PA played a leading role in efforts at recovery, rehabilitation and
reconstruction in Gaza. An international conference on Reconstructing Gaza was
held in Cairo in October, during which the EU pledged more than EUR 450
million.
In March 2014
President Abbas signed accession instruments for 18 international human rights,
humanitarian and diplomatic treaties without reservation. These included the
seven core UN human rights treaties, the four Geneva Conventions and the Hague
Convention of 1907. These instruments took effect in the ensuing months. In
December, President Abbas signed a further 20 international instruments.
Although the environment in the West
Bank continued to be relatively positive regarding respect for freedom of
expression, freedom of assembly and freedom of the media, there remained
cause for concern.
As regards freedom of expression,
regular complaints were made throughout the year by social media activists and
journalists of undue pressure placed on them, including through the use of
summonses by the security agencies. Most of the cases concerned journalists and
bloggers who exposed intra-Fatah rivalries or criticised the PA. Palestinian
security forces were also accused of preventing journalists from covering some
demonstrations in the West Bank.
Respect for freedom of assembly remained
a cause for concern, with some demonstrations being dispersed by force and some
participants being detained by the Palestinian
security forces.
Regarding freedom of association,
while civil society organisations (CSOs) were generally able to operate freely
in the West Bank, concerns existed regarding the role of the NGO Affairs
Committee established in December 2012 by Presidential decree. In addition, a
special committee was set up in August, under the PA’s Financial
and Administrative Control Administration, to evaluate and regulate the
activities of CSOs and the compliance of their internal by-laws with the Palestinian
Law on Charitable Societies. On a positive note, following the
agreement on reconciliation, the Jerusalem-based al-Quds newspaper was again
distributed in Gaza and the Gaza paper ‘Filistin’ circulated in the West Bank.
In Gaza, freedom of expression
remained under severe pressure. Journalists were attacked by the de facto authority’s
security forces, restrictions were imposed on journalists’ movements and —
until the formation of the National Consensus Government in June — attempts
were made to prevent the Palestinian Journalists’ Union from operating.
The work of CSOs in Gaza continued to be
impeded by officials from the de facto authorities. Although
restrictions on the activities and movement of CSOs were less rigorously
applied, officials continued to demand information on financial and staffing
matters. Moreover, additional requirements were introduced for obtaining exit
permits for national staff working for local civil society and international
organisations and licenses were required for organising a public event — in
direct violation of the
Palestinian Basic Law.
Other human rights and fundamental
freedoms and governance-related issues
The National
Action Plan for Human Rights was approved by the Minister of Justice and the
Minister of Planning after 12 months of consultations, research and drafting,
with the support of the Office of the UN High Commissioner for Human Rights.
Most of the plan’s recommendations were subsequently incorporated into the
final version of the Palestinian national development plan for 2014–16.
Seven death
sentences were handed down in 2014 by the de facto authorities in
Gaza. Two people were executed in Gaza in May 2014. In addition, approximately
25 ‘suspected collaborators’ were summarily executed in August by Hamas in
Gaza.
There were
regular complaints during 2014 of torture and ill-treatment in detention
centres, in both Gaza and the West Bank. Most complaints in the West Bank,
registered but not investigated by the Independent Commission on Human Rights, concerned
the Palestinian Civil Police. Torture and ill-treatment continued despite the
Presidential Decree issued in May 2013, confirming the PA’s commitment to the
prohibition of all forms of torture. However, one of the national intelligence
agencies, the Palestinian Preventive Security Service, developed a revised code
of conduct for its staff, which clearly prohibits the use of torture.
Similarly, both the Palestinian Preventive Security Service and the General
Intelligence Service agreed to unannounced visits to their detention centres by
the Office of the High Commissioner for Human Rights. Since January 2011, no
civilians have been tried in West Bank military courts. However, 22 civilians
sentenced by a military court prior to that date remained in prison, with no
possibility of a retrial before a civilian court. Arbitrary detention
remained a matter of concern, with 32 complaints being lodged before the
Independent Commission of Human Rights. These included failure to observe due
process, illegal detention procedures, and non-separation of civil and
political detainees.
As regards freedom
of religion or belief and the rights of people belonging to a minority,
Christians were well represented at political level. However, many Christians,
along with secular Muslims, complained of an increasing trend in Palestinian
society advocating conservative Islamic values, especially in Gaza.
Violence
against
women and their overall socio-economic vulnerability remained challenges
for Palestinian society. Based on the data provided by the Women's Centre for
Legal Aid and Counselling (WCLAC), 23 femicides occurred in 2014 (16 in the
West Bank and seven in Gaza). 16 honour killings and seven suicides for
violence were documented by WCLAC. According to the 2013 statistics on women
and men in Palestine issued by the Palestinian Central Bureau of Statistics
(PCBS), married and previously married women were those most subjected to all
forms of violence in Palestine.
In a positive
step, President Abbas issued a decree amending the Penal Code to remove the
power of the judiciary to take into account certain ‘mitigating factors’ when
sentencing in cases of honour killings or femicide. However, another provision
remained in place, giving any family member of the victim the right to
relinquish his/her rights, following which a case is often dropped.
Palestinian
women’s rate of participation in the labour market remained among the lowest in
the world (17.3 % against 69.3 % for men for 2013) even though women
now comprise the majority of Palestinian university graduates. A general
increase in unemployment and poverty contributed in turn to an increase in
early marriages for girls and in the number of girls dropping out of school.
Both human security and access to justice remained highly problematic for
women, who often only have recourse to traditional informal justice systems.
The use of children in the
labour market continued to be a concern, with 3.5 % of all children aged
10-17 years being employed in Palestine (4.9 % in the West Bank and 1.4 %
in the Gaza Strip).
People with
disabilities continued to suffer from social exclusion and a lack
of access to appropriate care, especially people with mental disabilities. The
summer conflict in Gaza resulted in a significant increase in the number of
people with disabilities. The main centre in Gaza providing services to people
with disabilities was destroyed. Steps were taken over the year to establish a
national mechanism to monitor and document disability-based discrimination.
Personal status
laws contained discriminatory provisions in the areas of marriage, divorce,
child custody and inheritance. Matters relating to personal status were handled
by Sharia courts for Muslims, and ecclesiastical courts for Christians.
Cooperation
on foreign and security policy, regional and international issues, conflict
prevention and crisis management
Direct
peace negotiations between Palestinians and Israelis, re-launched in
2013, broke down in April 2014, following a lack of agreement on a US-brokered
framework and on an extension of negotiations, Israeli settlement
announcements, Palestinian accession to 18 international conventions and the
formation of the Palestinian National Consensus Government. In its Council
Conclusions of May, July and August 2014, the EU urged the parties to resume
meaningful negotiations with the aim of achieving a comprehensive peace
agreement based on a two-state solution. It stressed that the US-led peace
efforts, fully supported by the EU, must not go to waste, and cautioned that a
fundamental change in negative developments on the ground, including continued
settlement expansion, was necessary to prevent the irreversible loss of the
two-state solution.
The
50-day military conflict between Israel, Hamas and other Palestinian militant
factions in Gaza in July and August 2014 was the longest and deadliest
round of violence in Gaza to date. Over 2 100 people on the Palestinian
side (including over 1 500 civilians) and 71 Israelis and one foreigner (of
which 5 civilians) were killed; there was an unprecedented level of destruction
with 17,000 homes and major infrastructure in Gaza, including UNRWA facilities,
destroyed or damaged; nearly 500 000 people were displaced at the peak of
the conflict.
The EU
condemned the indiscriminate firing of rockets into Israel by Hamas and
militant groups in the Gaza Strip and reiterated that all terrorist groups must
disarm. At the same time, the EU condemned the loss of life of hundreds of
civilians, including many women and children, and emphasised that the Israeli
military operation must be proportionate and in line with international
humanitarian law. Gaza received an additional EUR 5 million from the EU to
provide immediate relief to affected civilians in Gaza, bringing the overall EU
humanitarian aid to Gaza in 2014 to EUR 23.5 million.
The EU fully supported
Egyptian efforts to broker a ceasefire and stressed the need for a durable and
comprehensive solution to the conflict. In particular, it stressed that this
should:

 lead
     to a fundamental improvement in living conditions in Gaza, through
     unimpeded humanitarian access and the lifting of the Gaza closure regime; 
 end
     the threat posed to Israel by Hamas and other militant groups; and 

·        
address the broader context of the Middle East Peace Process and
the situation in the West Bank. 
The EU
engaged extensively with both Israel and the PA and offered to contribute
significantly to a comprehensive solution, including through Common Security
and Defence Policy (CSDP) missions on the ground.
The EU
stressed that the Palestinian National Consensus Government should exercise its
full government responsibilities in both the West Bank and the Gaza Strip,
including in the field of security and civil administration, and through its
presence at Gaza’s crossing points.
3.         ECONOMIC
REFORM AND SOCIAL REFORM AND DEVELOPMENT
Palestine's real GDP fell by 3.7 %[3]
year-on-year in 2014, following the conflict in Gaza. The economic impact of
the conflict is difficult to distinguish from other factors, but Gaza's real
GDP is estimated to have declined by around 15%. Unemployment in Palestine is
expected to reach up to 30% and the external sector continues to be defined by
the dependence on the Israeli economy, which accounts for about 85% of
Palestinian exports and 65% of Palestinian imports. The fiscal deficit was
estimated at 16.5 % of GDP, up from 14 % in 2013, despite some
improvements in tax collection. Delays in the clearance of revenue transfers to
the PA led to delays in salary payments to civil servants and an accumulation
of arrears in payments to the private sector, further worsening the fiscal
situation and burdening the private sector. Public debt breached the 40 %
threshold stipulated by law and is expected to have reached 44 % of GDP at
the end of 2014.
The conflict in Gaza was
expected to deepen extreme poverty, the rate of which was already 21% before
the conflict (compared with 13% in Palestine as a whole). In January the PA
adopted its 2014-16 social protection sector strategy emphasising social
cohesion and solidarity while seeking to develop an integrated system of social
protection. Social assistance payments benefited over 110 000 households,
with an estimated annual cost of EUR 110 million, 45 % of which continued
to be funded by the EU and World Bank.  
To boost
employment there was a further expansion of initiatives to bring
together training and labour market stakeholders at local level by developing
local employment and training councils. The National Qualifications Framework
was rolled out at local level, though it was still not fully integrated at
ministerial level, and a labour market information system was also established.
To help improve revenue
collection, the PA developed a comprehensive strategy for tax policy
reforms. This included re-examining tax laws, tax holidays and the investment
promotion law, as well as widening the tax base, increasing compliance and
strengthening tax administration.
The Ministry of Agriculture
endorsed a new 2014-16 agriculture sector strategy on resilience and
development, and is soon to launch the 2014-19 olive and olive oil sub-sector
strategy and the livestock sub-sector strategy, all three supported financially
by the EU. The agriculture sector continued to be severely affected by
settlers’ violence, including the destruction of olive trees, and the
restrictions imposed on Palestinians’ access to their land.
4.         TRADE-RELATED ISSUES, MARKET AND
REGULATORY REFORM
The EU-28 remained the second most
important trading partner of Palestine, with total trade in goods amounting to
EUR 0.155 billion in 2014.
The Cabinet
endorsed a comprehensive national export strategy, formulated with
support from EU funding and in partnership with the private and public sectors.
The strategy proposed measures for developing Palestinian exports in key
sectors.
A national quality policy was adopted in August 2014, which provides a legal,
regulatory and institutional framework for metrology, certification and
accreditation.
In the area of customs,
Palestine ratified the Convention on pan-Euro-Mediterranean preferential rules
of origin in May 2014. The Convention entered into force on 1 July 2014.
Regarding sanitary
and phytosanitary issues, there were delays in adopting the food safety
strategy and the food safety law due to fragmented legislation, multiple
jurisdictions, and gaps in institutional capacity and in infrastructure.
However, the PA and donors upgraded the Central Veterinary Laboratory and
introduced an animal identification and traceability system.
The introduction
of regulatory impact analysis remained at a very early stage. Palestine
completed a first drafting manual for primary and secondary legislation.
Minimum capital requirements for business
start-ups were completely abolished and a single identification number was
introduced. While these actions contributed to a faster and cheaper system for
company registrations, the administrative costs of registration remained
relatively high.
New regulations
were introduced and amendments to the tax law were passed to improve
revenue collection and tighten the relevant legal framework.
The
modernization of the Palestinian statistical system is ongoing with an
increased focus on the use of administrative data sources. The national
statistical system is dependent on donor contributions. 
Palestine made
further progress in implementing public procurement rules. Implementing
regulations for the Public Procurement Law (along with modifications to the law
itself) were approved in April 2014. The organisational structure of the High
Council for Public Procurement Policies was reformed, pending Cabinet approval.
Legal
changes were drafted in April to bring the State Audit and Administrative
Control Bureau’s legal framework into line with INTOSAI[4]
standards and best professional practices. There were no replacements for the
three-member Audit Committee, all of whom resigned in 2013, and there was
uncertainty as to whether the committee would be reconstituted. 
In
the area of Integrated Maritime Policy (IMP), Palestine participated in
the EU-funded IMP-MED Project providing assistance on cross-sectorial marine
and maritime issues. 
The joint 2014 evaluation on SME policy[5]
highlighted challenges to be addressed by Palestine, including the elaboration of a multi-year SME development
strategy and of a national lifelong entrepreneurial learning strategy and work
programme, strengthening of creditor rights, establishment of a national
framework for training needs analysis, and promotion of female
entrepreneurship.
5.
        COOPERATION ON JUSTICE, FREEDOM AND SECURITY
The
limited jurisdiction of PA institutions over all the territories continued to
impact negatively on both the justice and security sectors, weakening the
capacity and effectiveness of their associated institutions. Notwithstanding
the formation of a National Consensus Government in April, and the nomination
of a Minister of Justice based in Gaza, the PA did not advance in harmonising
legislation between Gaza and the West Bank and unifying their respective legal
systems.
The
PA’s 2014-16 National Strategy for Justice and Rule of Law, drafted in April
2014, was amended in September 2014 on the basis of comments received from the
international community. This modified version has not yet been approved by the
Minister of Justice. The delineation of responsibilities between the different
institutions that operate in these sectors still needed to be tackled
comprehensively. Efforts were also made to establish the Palestinian
Judicial Institute as the central institution in charge of training for the
judiciary and prosecution. The nomination
by the PA of a Eurojust contact point would help facilitate closer judicial
cooperation with the EU.
The
new draft Penal Code remained in draft form only. It contained some important
progressive elements with regards to the death penalty and honour crimes, but
should be reviewed to ensure its wider compatibility with the commitments
contained in the international conventions to which the PA committed itself in
April 2014. The draft legal aid law was also delayed, following concerns raised
by civil society. The draft law on youth justice has been with the President’s
office for signature since April, despite the fact that its adoption is crucial
for establishing a specialised youth justice system.
As
far as the security sector is concerned, the Ministry of Interior played
a lead role in developing the 2014-16 Security Sector
Strategy Plan, which was adopted in April. Progress was made in implementing
the strategy and the Ministry made greater efforts to reach out to
international stakeholders.
The
capacities of the police and civil defence continued to be enhanced, with EU
support. New infrastructure and equipment were delivered for community police
stations and prisons, and firefighting and rescue vehicles were provided for
civil defence. The organisational capacity of both services was strengthened,
with the development of more efficient management systems, improved
communication skills and strengthened human resource and administrative
capacities.
In September
the Palestinian Civil Police adopted an Accountability Strategy and Action
Plan. The EU Coordinating Office for Palestinian Police Support will support
the Palestinian Civil Police, alongside the United Nations Development
Programme, by advising on delivery of the action plan. A Code of Conduct for
the Palestinian Civil Police was completed and distributed across its 11
districts in the West Bank. A law on the civil police has yet to be fully
developed. This will be important in clarifying the role and mandate of the
civil police and in strengthening accountability.
While
the overall political context between the Israeli and Palestinian authorities
remained tense and uncertain at field level, some technical cooperation was
initiated with joint Palestinian/Israeli workshops to
exchange respective practices in community policing.
Some progress was made in promoting civilian oversight in both the
security and justice sectors thanks to the organisation of regular, specialised
training by non-governmental organisations (NGOs) supported by the EU and other
donors.
6.         TRANSPORT,
ENERGY, ENVIRONMENT, CLIMATE CHANGE, INFORMATION SOCIETY, RESEARCH AND
DEVELOPMENT AND INNOVATION
The development of Palestine’s transport
policy and infrastructure continued to be subject to severe constraint,
particularly due to Israel’s occupation and closure regime, and issues relating
to permitting and ownership. In order to develop a long-term, consistent
response to these problems, the PA embarked on preparatory work for a road and
transport master plan with the support of the European Investment Bank, aimed
at providing Palestine with a 20-year planning horizon and a five-year
programme for priority actions in the sector. At regional level, the PA is a
member of the Euro-Mediterranean transport dialogue and technical assistance
programmes.
In
the energy sector, the EU continued to assist the PA in reducing the
burden of net lending originating from the electricity sector. The new
Palestinian Electricity Transmission Company was established in February,
following the earlier establishment of electricity distribution companies and
of the Palestinian Electricity Regulatory Council. Four new supply substations
and a control centre in Palestine were also being developed to increase Palestinian
control over electricity loads imported from Israel and to help reduce the
purchase tariff paid to the Israeli Electricity Company. Progress was good
despite a land expropriation issue and a delay in securing some of the required
funds.
The Environmental
Quality Authority developed a climate change strategy for Palestine,
though this was not yet formally adopted. Palestine actively participated in
the regional EU CLIMA South project, which provided capacity building on
climate action. 
An external
review of the Environmental Quality Authority’s organisational structure
was carried out by the Swedish International Development Agency, which
recommended that it should develop a strategic and institutional development
five-year plan to improve monitoring and inspection, and to develop databases,
information systems and a communication strategy. Following the formation of
the National Consensus Government, the PA prepared an action plan to reactivate
environmental institutions in Gaza. The action plan was put on hold at the
beginning of Operation Protective Edge.
The landfill
site of Al Minya was opened in March 2014, allowing the disposal of solid waste
from Palestinians and settlers.
In June 2014 President Abbas adopted a
decree endorsing a new water law, providing the legal basis for
implementing the Palestinian water sector reform. In addition, the 2014-16
national water sector strategy was presented to the international community in
February, and a national awareness and education strategy for the environment
sector was adopted. The water sector was hit heavily by the armed conflict in
Gaza, leaving a large segment of the population in the Gaza Strip deprived of
safe drinking water. Even before the conflict, 95 % of the water that
Palestinians in Gaza had been consuming for decades was unfit for human
consumption, as electricity shortages limited water treatment capacity and thus
the availability of water to households. Infrastructure was systematically
destroyed during the conflict, and the bombing further damaged the aquifers.
The EU continued to assist the PA in the
water sector, investing in large infrastructure projects including: the water
sanitation and reuse for agriculture project in Tayasir (EUR 22 million); the
wastewater treatment plant in Nablus East and a reuse scheme (EUR 20 million);
the North Gaza emergency sewage treatment project (EUR 6 million); and the
short-term low-volume sea water desalination plant for Southern Governorates in
the Gaza Strip (EUR 10 million).
In the area of research
and innovation, two projects with Palestinian participation were selected
for the first 'Horizon 2020' calls: the Middle East research and innovation
dialogue, promoting science diplomacy and cooperation between the EU and the
Middle East, and the Beyond Project, promoting space cooperation. A series of
promotional 'Horizon 2020' events took place during the year in An-najah. The
Scientific Research Council at the Ministry of Education and Higher Education
launched an initiative on establishing research centres of excellence in
Palestinian universities. As a result, 20 proposals from different universities
in West Bank and Gaza were submitted (in fields ranging from health, water,
energy, agriculture to nanotechnology, e-learning and others).
7.         
PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH
The education sector working group first
met in September 2014 and agreed on the ‘partnership principles’ to support the
common education development strategic plan for 2014-19 (EDSP III). An
education sector annual review was launched, paying special attention to the
consequences of and needs resulting from the last Gaza conflict. Basic
education in Gaza faced a difficult infrastructure situation and a growing need
for psychosocial support for traumatised children. It continued to suffer from
infrastructure shortcomings in areas besides Gaza, in particular East Jerusalem
and Area C, due to the threat of demolition and difficulties obtaining permits
for new construction. Due to a structural deficit, Palestinian higher
education institutions were unable to accept all students that wished to
continue their studies. Almost all higher education institutions were private
entities and were underfunded because of low tuition fees and limited public
contributions.
The current role of technical and
vocational education and training does not meet the needs of the economy.
The national technical and vocational education and training strategy in 2014
continued to be implemented with the creation of the National Agency for Technical
and Vocational Education and Training, approved in May. Work was being done to
set up the agency’s by-laws and to make the agency operational.
Palestine participated
in the Tempus programme with 14 on-going projects, five of which are
coordinated by Palestinian universities. 205 Palestinian students and staff
were selected in 2014 within partnerships supported by Erasmus Mundus
and two students received scholarships to participate in joint master's
programme. In 2014 no candidates were selected for funding under
the Marie Skłodowska-Curie actions (MSCA) under 'Horizon 2020'.  
Young people and youth
organisations benefited from Erasmus +, with 532 people taking part in
mobility projects. Cooperation on MedCulture and Euromed Audiovisual programmes
continued.
The
Palestinian health system continued to operate under severe economic and
political pressure. In February 2014 the PA adopted its new 2014-16 national
health strategy. The implementation of this and previous strategies was
hampered by system inefficiencies coupled with a severely depressed fiscal
situation. This translated into chronic drug shortages (particularly in Gaza)
and an unsustainable increase in health expenditure related to medical
referrals (which represented over 40 % of the budget of the Ministry of
Health in recent years).
The
massive destruction caused by the summer conflict in Gaza, including to UN
facilities, caused grave disruption in the delivery of essential services to
the population, including in the health and education sectors.
Steps were taken in early 2014 to
improve the fairness and efficiency of the referral system, especially by
decentralising the process. Stronger action was still needed to address this
fiscally unsustainable trend, which translated into accumulated unpaid bills to
outside providers of nearly ILS 410 million (EUR 90 million). The debt to
pharmaceutical suppliers counted for an additional ILS 265 million (EUR 58
million).
The quality of hospitals in East
Jerusalem was further improved with two additional hospitals passing
international quality accreditation in early 2014, bringing the total number of
accredited East Jerusalem hospitals to four. The network was also registered as
an NGO. In addition, five Ministry of Health hospitals in the West Bank were
equipped with a comprehensive management and information system designed to
help the Ministry of Health in shaping national policies and priorities, and
monitoring and evaluating services. Three more hospitals (including two in East
Jerusalem) should be equipped shortly.
Palestine continued its technical
cooperation with the European Centre for Disease Prevention and Control (ECDC)
in the framework of an EU-funded regional project on preparatory measures to
support participation by ENP countries in ECDC activities. Palestine nominated
a national correspondent for relations with the ECDC.
Developments in civil society
focused on the Palestinian national development plan’s objective of providing
better opportunities for young people to participate in political and community
life. The
Higher Council for Youth and Sports (under the PLO), in partnership with
UNICEF, launched national minimum standards for youth and adolescents centres,
to enhance their development and oversee the support provided for youth work.
The EU accreditation process for voluntary work for local NGOs working with
young people was being implemented.
_____________________________
[1] This
designation shall not be construed as recognition of a State of Palestine and
is without prejudice to the individual positions of the EU Member States on
this issue.
[2] Area C refers to 62 %
of the occupied Palestinian territory in the West Bank that remains under full
Israeli military and administrative control.
[3]
For sources and detailed figures, see Statistical Annex accompanying the
reports; figures without sources are forecasts by Commission services.
[4] International
Organisation of Supreme Audit Institutions.
[5] SME Policy Index, the
Mediterranean Middle East and North Africa 2014, Implementation of the Small
Business Act for Europe (SBA).