France to Provide Budgetary Aid to Palestinian Authority Amid Financial Crisis
The Palestinian Authority (PA) will receive budgetary aid from France, according to a statement published on Thursday by AFP.
The aid will contribute to the payment of salaries for PA employees, particularly in the Ministry of Health, as stated in a communiqué from the French Consulate General in Jerusalem.
The PA has been facing a deteriorating financial situation for months, mainly due to Israeli restrictions on the transfer of tax revenues collected by Israel and owed to the PA under the Oslo Accords (1993), which are now moribund.
The PA, which exercises limited authority over part of the occupied West Bank (after being ousted from the Gaza Strip by Hamas in 2007), has been unable to pay its employees' salaries on time and in full since the start of the Gaza war triggered by the Palestinian Islamist movement's attack on Israel on October 7.
According to the French Consulate's statement, Paris intends to support the PA with €16 million in 2024.
The consulate emphasized France's support for the PA and the establishment of a Palestinian state capable of exercising its responsibilities, including in Gaza.
The survival of the Ramallah-based PA is a concern for chancelleries after more than eight months of war in the Gaza Strip.
"Avoiding the financial collapse of the Palestinian Authority is the absolute priority," said a diplomat in Jerusalem.
"There's already enough chaos with Gaza; we don't need a crisis in the West Bank as well, and the PA is the preferred option for Gaza after the war," he added.
On Tuesday, the United Kingdom announced it would resume its financial support to the PA with £10 million (approximately €11.8 million) for "basic services and salary payments."
"A strong and effective Palestinian Authority is essential for a lasting peace," London stated in a communiqué.
On the same day, the US Department of State announced that the United States would provide an additional $404 million (approximately €375.8 million) in humanitarian aid to support Palestinian civilians, but not through direct aid to the PA.
As of May 31, the European Union had already provided €25 million to the PA to contribute to the payment of salaries for Palestinian civil servants in the West Bank before the Eid al-Adha holiday, which celebrates the sacrifice of Abraham and was observed on Sunday.