EU suspends "all payments" to Palestinian authorities

European Commissioner for enlargement and neighbourhood policy Olivér Várhelyi has said that the European Commission has “immediately” suspended all payments made to the Palestinian authorities under the common EU budget.

“As the biggest donor of the Palestinians, the European Commission is putting its full development portfolio under review, worth a total of 691 million euros [$729 million],” Várhelyi said on X, formerly Twitter, in reaction to the military attack launched by Hamas against Israel, according to Euronews.

The move will affect all payments and all projects, he said. Additionally, all new budget allocations, including for 2023, will be postponed “until further notice,” the Commissioner added.

“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,” Várhelyi said. “We need action and we need it now.”

The EU has traditionally been a major provider of humanitarian and financial aid to the West Bank, which is partially governed by the Palestinian Authority and President Mahmoud Abbas. This support goes into essential services, such as healthcare, social assistance, salaries of civil servants and development projects in the field of “state-building.” For Gaza, the money is channelled through the United Nations Relief and Works Agency for Palestine Refugees (UNRWA).