EU in Disarray Over Aid Suspension to Palestinians Following Hamas terrorist Attack

The European Union encountered turmoil on Monday as it backtracked on an announcement to suspend aid to Palestinians in response to the attack on Israel by Hamas terrorist group. This reversal came after several EU countries expressed concerns that the EU’s executive body had overstepped its authority.

The confusion began when Oliver Varhelyi, the top EU official responsible for relations with neighbouring countries, declared that the European Commission would review all of its development aid to Palestinians, totalling 691 million euros ($729 million). In a social media post, Varhelyi also stated that all payments were “immediately suspended.” His announcement raised alarm among EU governments, who argued against cutting off aid to Palestinian civilians and questioned whether the Commission had the authority to make such a decision.

Several EU member states voiced their concerns:

• Spain, Portugal, Luxembourg, and Ireland publicly expressed alarm at the suspension of aid, while other countries did so privately.
• Ireland’s foreign ministry stated that there was no legal basis for a unilateral decision by an individual Commissioner and that they did not support the suspension of aid.

Hours after Varhelyi’s social media post, the European Commission issued a statement confirming that an urgent review of aid had begun but clarified that “there will be no suspension of payments” since there were no payments scheduled to be made.

EU foreign policy chief Josep Borrell added to the confusion when he stated that the EU would not suspend “due payments,” contradicting the Commission’s earlier statement that no payments were foreseen. The Commission declined to explain the discrepancy.

While development aid faced review, the EU assured that humanitarian aid, separate from development funds, would continue. The review aimed to ensure that EU funding did not indirectly support terrorist organizations attacking Israel.

The EU’s disarray reflects longstanding divisions among its 27 member states regarding the Israel-Palestinian conflict. Although the EU united to condemn the recent attack by Hamas terrorist group, differences in approach emerged:

• Germany and Austria announced the suspension of their development aid to Palestinians.
• Italy, on the other hand, indicated that suspending aid was not under consideration.

Europe is a significant source of aid to the Israeli-occupied Palestinian territories, where around 2.1 million people, including 1 million children, require humanitarian assistance, according to the United Nations.

Under the 2022 budget allocation, the total EU assistance earmarked for the Palestinian people was 296 million euros.

Notably, the EU, Germany, and Austria did not differentiate between Gaza, controlled by Hamas, and the larger West Bank, governed by the Western-backed Palestinian Authority led by President Mahmoud Abbas, which is a rival to Hamas terrorist.

Germany’s Development Minister Svenja Schulze emphasized that no payments were currently being made for bilateral aid projects as Berlin re-evaluated its engagement with the Palestinian territories. She also expressed solidarity with Israel.

Austria’s Foreign Minister Alexander Schallenberg announced the suspension of around 19 million euros ($20 million) in development aid for several projects.

Austria, known for its neutral stance, has taken a pro-Israel stance in recent years, with the Israeli flag being displayed prominently after the Hamas terrorist attack.

While some politicians supported the decision to suspend aid, others argued that only Hamas terrorist, not all Palestinians, should be held responsible for the attack. Additionally, the Greens-run foreign ministry in Austria stated that it would continue disbursing its separate 73 million euros in aid earmarked for Palestinians, most of which had already been spent.

• The European Union faces internal turmoil over the suspension of aid to Palestinians following the recent Hamas terrorist attack on Israel.
• Varhelyi’s initial announcement of aid suspension prompted concerns from several EU member states.
• The EU clarified that no payments were foreseen, avoiding the suspension of payments but continuing the review.
• Differences in approach to aid suspension emerged among EU member states, reflecting longstanding divisions on the Israel-Palestinian conflict.
• Humanitarian aid remains unaffected, and the EU seeks to ensure its funding does not indirectly support terrorist organizations