EU assistance to PNA budget in 2009 reaches 207 mln euros

Submitted by admin on Wed, 08/12/2009 - 08:46

Palestinian premier Salam Fayyad and the European Union Monday inked a 39-million-Euro financing agreement for direct support to the Palestinian National Authority(PNA) budget, bringing the total EU support this year to 207 million euros.

Fayyad and the EU Commission Representative Christian Berger signed the agreement in Ramallah, said a joint EU and PNA statement, adding "this additional commitment makes the EU the largest provider of direct financial assistance to the PNA."

"By providing financial support to the budget, the EU helps the PNA to provide vital services to all citizens, through a monthly contribution for the payment of salaries to the PNA's civilian workers and pensioners," said the statement.

It added that this money also "directly helps the poorer sections of Palestinian society, by providing regular contributions for allowances paid to needy families through the PNA Ministry of Social Affairs' social protection system."

Last week, Fayyad revealed that his government suffers a severe fiscal crisis, warning that if donor countries fail to fulfill their aiding pledges to the PNA, the situation in the Palestinian territories would be crucial.

The EU currently provides a large portion of the PNA's external financing needs.

"The EU supports the PNA efforts to build sustainable institutions for a future Palestinian state. Our long-term goal is also for the PNA budget to be supported by the revenues generated by a thriving Palestinian economy," said Berger.

He added that "we fully support the PNA's efforts to implement a business-friendly reform program, strengthen the rule of law and improve security, all of which help create the conditions for the private sector to develop."

"Of course, Israel also has a major part to play: a full implementation of the provisions in the 2005 Agreement on Movement and Access would deliver significant benefits in terms of boosting internal and external trade, a linchpin of the Palestinian economy," said Berger.