EU aid to Palestine - MEPs question Palestinian Prime Minister on results

The EU, as the biggest donor to the Palestinian Authority, has a more important role to play now than ever before, Palestinian Prime Minister Salam Fayyad told Budgets Committee MEPs on Tuesday. MEPs stressed that Europe could also contribute useful experience, as well as money.

MEPs agreed with Mr Fayyad on the need to end Israel's blockade of Gaza, but asked detailed questions about the region's future and the role of EU aid.

“The EU has been very generous to us, both multilaterally - through the Commission - and bilaterally - from single countries”, said Mr Fayyad in his opening speech.

EP Middle East Working Group chair Hans-Gert Pöttering (EPP, DE), was the first to underline Parliament's strong support for an end to the Gaza blockade, but he also raised some concerns: “When the border crossings open, we have to make sure that no weapons that could threaten Israel enter. Regarding the conflict between Hamas and Fatah, how are you, Prime Minister, going to ensure that there will be peace between the two fractions?”

“Our failure is not the consequence of political pluralism, but not to have this pluralism in a responsible way”, replied Mr Fayyad, adding that he hoped a solution could be found in the ongoing reconciliation process led by Egypt.

“How should the EU deal with Hamas?”, asked Helga Trüpel (Greens/EFA, DE). “Personally I think it is really a mistake to say 'I do not talk to these persons'”, replied Mr Fayyad.

Aid and political power

“So far, the EU has provided billions of Euros to the Palestinian Authority - where does this stand in comparison to American aid? We feel that we are paying for other's policies”, said Miguel Portas (GUE/NGL, PT). “One often says that in Palestine, the EU is an economic giant but a political dwarf. What do you, Mr Prime Minister, think we could do to enhance our political role?”, added Göran Färm (S&D, SE).

“The EU is already an effective player”, replied Mr Fayyad, observing that the EU, once there is a consensus, can play a crucial role in influencing the Middle East “Quartet” (United Nations, USA, EU, and Russia) and adding that the Quartet had recently adopted a position very close to an earlier opinion of the European Council. “I believe that the EU is in a much better position when it comes to becoming an important player than it has been at any point before”, he said.

EU countries together contribute a third of the overall financial support to the Palestinian Authority. Another third comes from Arab countries and the rest from USA, Norway and other sources. The USA is the biggest single contributor, noted Mr Fayyad.

Marielle De Sarnez (ALDE, FR), a member of Parliament's delegation to Israel and the Palestinian Territories at the end of May, said she had been struck by the development in Ramallah, compared to a few years ago. “Is this growth due to the foreign aid or to other reasons?” she asked.

Most growth has come from financial stimulus, replied Mr Fayyad, adding that his government is working hard on reducing its dependence on foreign aid. “If commercial goods were allowed to pass the borders, our incomes would increase by 25 %, which would mean that our dependence on external financing could decrease by 25%”, he said.

In negotiations on EU's budget for 2011, MEPs had earlier stated that they are “extremely worried” by the Commission's proposed reduction of over 32% in financial assistance to Palestine, the peace process and UNRWA.

More than money

Lajos Bokros (ECR, HU) wanted to know more about the Palestinian's non-financial needs. “What support do you need? Would you for instance need our expertise, in areas like how to fight corruption?”, he asked.

“We have benefitted a great deal from the EU institutions, including the European Parliament. The experience you have is extremely valuable”, replied Mr Fayyad.

“We can provide you with more than money. Look at us! We all come from countries that used to be at war with each other. Today we can co-operate like this. What we have done could you also do, we can only serve as an example. You need to do it your way, but we are more than willing to help you”, said Budgets Committee chair Alain Lamassoure (EPP, FR).

The meeting was arranged by the Budgets Committee, but also attended by MEPs from the Foreign Affairs and Development Committees. It followed an EP delegation visit to the region in May.

Mr Fayyad also met EP Vice-President Gianni Pitella (S&D, IT). Please see separate press release (link below).