What EU shift in financial support policy means for Gaza

Palestinian employees of the former Hamas government queue up outside a post office in Gaza City on October 29, 2014 to receive 1,200 US dollars each, which is part of their wages that has been delayed for months. The Palestinian national unity government headed by prime minister Rami Hamdallah sent the previous day roughly 30 million dollars by car across the Erez border crossing from the West Bank to the Gaza Strip to pay 24,000 former employees. AFP PHOTO / MAHMUD HAMS (Photo credit should read MAHMUD HAMS/AFP/Getty Images)

It is no secret that the Palestinian Authority’s (PA) financial crisis is mounting with declining foreign support. Donors’ funding is decreasing and the PA’s financial crisis is ongoing. A new financial support policy for 2017 was adopted by the European Union, and that the EU contribution of 30 million euros ($32 million) that had gone to pay the salaries of PA civil servants in the Gaza Strip will be used to support families in need, provide job opportunities and fund development and infrastructure projects. Prime Minister Rami Hamdallah launched efforts to prevent the EU decision, but to no avail. According to the statement, this means that the PA’s financial burden will grow and the $39 million monthly budget deficit will increase.
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