The European Union’s relationship with Palestine has taken a tumultuous turn, plunging the situation into uncertainty. EU Commissioner Oliver Varhelyi initially announced that the bloc would suspend all payments from its development program for Palestinians, prompting a review of projects and postponing new budget proposals until further notice. However, just five hours later, the European Commission clarified that there would be no suspension of payments, despite commencing an urgent review of EU assistance for Palestine. The reason behind the reversal remains unclear, but it comes amidst heightened tensions between Israel and Palestine following a string of attacks on Israel by Hamas.
The EU has historically maintained a commitment to the stability and security of Israel, stressing that no EU money goes to Hamas, which is considered a terrorist organization. The bloc has frozen contacts with Hamas for 16 years, demonstrating its firm stance on the issue. Despite this, the European Commission’s statement indicated that the review would ensure that no EU funding indirectly enables any terrorist organization to carry out attacks against Israel. The review’s primary goal appears to be a cautious approach, ensuring that EU funding is not inadvertently supporting terrorist activities.
EU foreign policy chief Josep Borrell was critical of Varhelyi’s initial announcement, arguing that suspending payments would have damaged EU interests in the region and emboldened terrorists. Borrell emphasized that the EU is the biggest donor to the Palestinian people and has been advocating for a two-state approach, as guided by the 1993 Oslo peace accords. He contended that such a move would not only harm the Palestinian population but also undermine the EU’s effectiveness in promoting peace and stability in the region.