News Release

Chris Patten
No. 121/04
July 30, 2004
AID TO GAZA IN 2004
The EU Commission has approved 124.25 million in
aid for the
West Bank and Gaza, which continue to suffer from a severe economic recession.
Income levels have dropped severely and the level of suffering is unprecedented.
In response to this, the EU Commission 2004 program pursues two objectives: addressing
urgent needs and contributing to the creation of a viable and democratic Palestinian
state. This year, assistance to the Palestinians from the European Community Budget
is set to amount to around 250 million.
Todays announcement will be followed by the immediate release of a first
contribution of 26 m to the new Public Financial Management Reform Trust Fund
established by the World Bank.
Commissioner for External
Relations
Chris Patten said: I am particularly pleased to be contributing to the new
World Bank Trust Fund. I am keen for other donors to follow suit which will enable
the whole donor community to build on the EUs record of achieving Palestinian
Authority reform by attaching clear conditions to the delivery of financial assistance.
Public Financial Management Reform Trust Fund, 65 million. Created
backing from the international donor at the request of the Palestinian Authority
with community, the Reform Trust Fund was established by the World Bank in April
of this year. The objective of the Trust Fund is to continue improving management
of public finances and the viability of Palestinian Authority institutions. This
initiative broadens the conditionality that the EU has always applied to its own
assistance to the PA to a wider group of donors and reflects the recognition in
the international donor community of the value of the EU approach. The EU's immediate
initial payment of 26 million will be followed by two further payments. Funds
will be made available to the Palestinian Authority following a review of the
agreed conditions by the World Bank, in association with the donor community.
Emergency support to social services, 22.75 million. The objective of
this program is to mitigate the deterioration of health and higher education services
resulting from the ongoing conflict. Following on from the successful implementation
of the first and second Emergency Services Support Programs, the Commission has
approved 22.75 million for a third program to be implemented through the World
Bank.
Middle
East Peace Process (MEPP), European Partnership for Peace Program, 7.5 million.
The aim of these projects, conducted with a range of partners, is to provide support
for initiatives that combat violence and strengthen civil society in the Middle
East, in particular those groups in both Israeli and Palestinian society that
seek dialogue across cultures.
Implementation of the Palestinian Authoritys reform agenda, up to 5 million.
Technical assistance will continue to be provided in key areas of the Palestinian
reform agenda. This will build on previous support provided by the Commission
to advance reforms in key areas of the Palestinian administration, such as financial
control and good governance.
Reinforcement of the
TEMPUS program, 1 million. This program, which started in 2003, supports
the reform and modernization of higher education in the Palestinian Territories
by developing inter-university co-operation with EU universities.
Money has been set aside, but not yet committed for:
Gaza. Following a recent request of the Council to the Commission
to consider developing concrete measures to make a success of the disengagement
from Gaza, a reserve for an amount of 20 million has been set aside. This will
be defined in due course subject to developments on the ground.
East Jerusalem projects. 3 million have been set aside to support civil
society initiatives in East Jerusalem with a view to strengthening institutions
that are working on the improvement of living conditions in the area.
The package approved today comes on top of around 128 million already earmarked
through the following programs:
89 million through the United Nations Relief and Works Agency for Palestine
Refugees in the Near East (UNRWA) (of which 8 million from ECHO);
29 million for humanitarian aid through ECHO;
Around 10 million for food aid / food security through the World Food Program
and NGOs and for the
European Initiative for Democracy and Human Rights (EIDHR).
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Press Contacts:
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Anthony Gooch
202-862-9523
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Maeve O'Beirne
202-862-9549
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