European Union suspends hundreds of millions in aid for Palestinian authorities

The European Union announced on Monday that it was “immediately” suspending hundreds of millions of euros in aid for Palestinian authorities because of what an EU commissioner called the “scale of terror and brutality” during the attacks on Israel by Hamas.

Germany and Austria also announced similar measures.

“We need action and we need it now,” EU Commissioner Oliver Varhelyi tweeted. It also underscored strong words of EU support for Israel since the Hamas attacks started on Saturday, including that Israel had now every right to defend itself within the bounds of international law.

The surprise announcement by Varhelyi on development aid came just hours after EU officials stressed that no EU money whatsoever was going to Hamas in the first place and that contacts had been frozen for 16 years. The EU considers Hamas a terror group.

After hours of uncertainty over how deep the measures would reach and whether they would possibly also affect aid to those in immediate need, EU Humanitarian Aid Commissioner Janez Lenarčič said that the most urgently needed aid to Palestinians “will continue as long as needed".

“While I most strongly condemn the terrorist attack,” Lenarčič said, “it is imperative to protect civilians.”

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Beyond that, Varhelyi said that “as the biggest donor of the Palestinians, the European Commission is putting its full development portfolio under review,” which he said amounted to 691 million euros ($730 million).

Varhelyi said that the measures include that “all payments (be) immediately suspended. All projects put under review. All new budget proposals … postponed until further notice".

The EU says it is the biggest donor to the Palestinian people and has been advocating for years for the two-state approach that has guided international diplomacy since the 1993 Oslo peace accords between Israel and the Palestine Liberation Organization.

EU foreign ministers are slated to meet in Muscat on Tuesday to discuss the situation and determine what actions should be taken. Varhelyi’s announcement seemed to preempt the discussions.

“There can be no business as usual,” Varhelyi said.

“The foundations for peace, tolerance and coexistence must now be addressed. Incitement to hatred, violence and glorification of terror have poisoned the minds of too many,” the commissioner wrote.

During an earlier briefing on Monday, the European Commission sought to draw a clear line between Hamas, which it considers a terrorist organisation, and the Palestinian people, who are in need of humanitarian aid.

According to the bloc, it has provided humanitarian aid to help meet Palestinians’ basic needs since 2000 through the European Commission’s humanitarian aid department (ECHO) and the UN Office for the Coordination of Humanitarian Affairs (OCHA). Since 2000, ECHO has provided 700 million euros of humanitarian aid to Palestinians in the Gaza Strip and the West Bank.

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He said that Austria will review all projects with the Palestinian areas and consult with its international partners on further steps.