EU freezes aid to Palestinians after Hamas attack on Israel

The European Comission said on Monday it was reviewing its entire development aid portfolio for the Palestiniansworth 691 million euros (US$ 728.66 million), and which immediately suspended all payments after the Hamas attack against Israel.

“The magnitude of the terror and brutality against Israel and its people is a turning point,” said Oliver Varhelyi, EU Commissioner for the Neighbourhood, in a post on the social network X. “Everything cannot go on as usual.”

Hamas militants killed hundreds of Israelis and kidnapped dozens in the deadliest raid since the Yom Kippur War 50 years ago, prompting Israel to retaliate with its heaviest bombing of Gaza in its history, killing more than 400 people.

Varhelyi said all new budget proposals for Palestinian aid were also postponed until further notice. “The fundamentals of peace, tolerance and coexistence must now be addressed”he claimed.

“Hate speech, violence and the glorification of terror have poisoned the minds of too many people,” he added. “We need action and we need it now.”

European Union foreign ministers will hold an emergency meeting on Tuesday to discuss the situation, including reviewing aspects of development aid, officials said on Monday. Total EU aid to the Palestinian people under the 2022 budget allocation amounted to €296 million.

Neither the European Commission, nor Germany, nor Austria differentiated between Gaza, the Palestinian enclave ruled by Hamas, and the much larger West Bank, managed by the Western-backed Palestinian National Authority and led by President Mahmoud Abbas, whose Fatah movement It is a rival of Hamas.

“Expression of solidarity”

Austrian Foreign Minister Alexander Schallenberg said his country was suspending development aid of about 19 million euros ($20 million) for a handful of projects.

The Austrian conservatives in power have adopted one of the most pro-Israel stances in the European Union in recent years. The Israeli flag has been raised over the Chancellery and the Ministry of Foreign Affairs after the surprising attack by Hamas.

In Germany, Development Minister Svenja Schulze of the Social Democrats said no payments are currently being made for bilateral aid projects as Berlin is re-examining its commitment to the Palestinian territories.

“This is also an expression of our unwavering solidarity with Israel”he said at a press conference. “We are in contact with our partners there and reviewing everything again.”

The German Development Ministry has allocated €250 million in development funds to bilateral projects in the Palestinian territories for this year and next. He did not specify the amount he had already disbursed this year.

German politicians have in recent days stressed their country’s special duty to Israel and its security, given its historical responsibility for the Holocaust. The Israeli flag was projected on Saturday night on Berlin’s iconic Brandenburg Gate.

However, some politicians have opposed the decision to suspend aid, saying that Hamas, but not all Palestinians, were responsible for the attack.

Separately, a spokesman for the Greens-led Foreign Ministry said it would continue to disburse the €73 million it had allocated to the Palestinians, which were separate from the Development Ministry’s funds, and most of which They had already been spent.

The Foreign Ministry finances through international organizations and the United Nations, meaning Germany is obliged to disburse what it has promised, a government source said.

Asked whether Italy would follow Germany and Austria in suspending development aid, the Foreign Ministry spokesperson responded that it was not being debated.

A spokesman for British Prime Minister Rishi Sunak, asked whether the United Kingdom planned to follow in the footsteps of Austria and Germany, stated that the country had already provided aid to Palestinian refugees through the United Nations and was not aware of plans to change focus.

Source: Reuters