The amount is earmarked for progress in the implementation of the reform program and is part of the strategy established in the Letter of Intent signed by the parties to address the critical fiscal and budgetary situation of the Palestinian economy, aggravated after the Israeli attacks.

This support is expected to contribute to the comprehensive program for the recovery and resilience of the territory, although it will be necessary to raise funding from other donors.

In this regard, the Commission proposes to set up a coordination platform to channel aid to Palestine from autumn 2024 until the end of 2026.

To this end, Brussels will present a legislative proposal in early September to allow payments to begin before the end of this year.

The purpose is for the multi-year support program to enable the Palestinian Authority to achieve a balanced budget by 2026 and ensure its long-term financial sustainability thereafter.

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