BRUSSELS — The EU has put funding for the Palestinian Authority on hold following this weekend’s terror attack by Hamas in Israel.
EU Enlargement Commissioner Olivér Várhelyi announced that the European Commission is putting its full development portfolio — totaling €691 million — under review, with all payments immediately suspended.
“The foundations for peace, tolerance and co-existence must now be addressed. Incitement to hatred, violence and glorification of terror have poisoned the minds of too many,” the Hungarian commissioner said. “We need action and we need it now.”
The move comes as Germany and Austria announced the suspension of aid to the Palestinian territories.
The surprise attack by Hamas — the armed Palestinian group that has been designated a terrorist organization by the EU — caught much of the world by surprise, killing some 700 Israelis, with 400 Palestinians killed in retaliation strikes.
The EU announcement opens a debate that has long been a concern for Israel — outside funding for Palestinian causes.
The EU contributed around €300 million to Palestinian entities last year, and pledged €1.8 billion in total between 2021 and 2024. That total includes millions of euros to the Palestinian Authority to help pay salaries of civil servants and fund projects, also helping refugees via a United Nations agency, and funding some nongovernmental agencies.
EU countries will give their first political response to the proposal to suspend funding at a meeting of foreign ministers on Tuesday afternoon. The video meeting was convened by the EU’s external action service (EEAS) to discuss the rapidly developing situation in the Middle East.
EU foreign ministers are likely to discuss the issue when they convene via video link Tuesday afternoon for an emergency meeting to discuss the rapidly developing situation in the Middle East.
Josep Borrell, the EU’s foreign policy chief, issued a statement on Sunday on behalf of the EU, condemning “in the strongest possible terms the multiple and indiscriminate attacks across Israel by Hamas.” Several countries — including Ireland, Luxembourg and Denmark — sought that a reference for the need to de-escalate be included in the joint text, but this was opposed by others including Austria, three officials who were granted anonymity to discuss sensitive matters told POLITICO. This reflects a belief in some quarters that a call for de-escalation could be seen as describing the actions of both sides as equivalent.
The EU has previously faced criticism from Israeli officials about its funding for Palestinian organizations.
On Monday, European Commission spokesperson Eric Mamer said there are “strict controls in place in order to ensure that there is no direct or indirect financing [for Hamas].”
But given the attack over the weekend, scrutiny of Palestinian organizations — and how EU money might reach them — is almost certainly set to intensify.
The EU, which supports a two-state solution in the Middle East, has long attempted to manage a range of views among its 27 member countries over conflicts with Israel. France, the Nordic states and Ireland traditionally support a position that is seen by other countries as too pro-Palestinian.
Over the weekend, the European Commission’s headquarters was illuminated by the Israeli flag, with Commission President Ursula von der Leyen tweeting a number of times about the EU’s steadfast support for Israel. Some members of the European Parliament and commentators criticized this move.