EU signs €400 million financial agreement for Palestine

A €400 million financing facility was formalised for Palestine during a signing ceremony in New York on Wednesday, held alongside the UN General Assembly.

The program is structured as an intermediated facility, channelled through the PMA and local financial institutions, to improve access to finance for micro, small and medium-sized enterprises (SMEs) as well as mid-cap companies.

The plan is part of an overall €1.6 billion EU facility over 2025–2027.

European Commissioner for the Mediterranean Dubravka Šuica and EIB Vice-President Ambroise Fayolle sealed the agreement, together with the Palestinian ambassador to the UN Riyad Mansour.

Šuica told Euronews the EU wants "to make the Palestinian economy vibrant" and to stimulate the private sector, creating opportunities to establish SMEs.

The EU is the first aid provider for the Palestinians.

Trump's comment on Palestinian statehood

Šuica reacted to the recent recognition of Palestine by many countries, including Australia, Canada, France, Portugal and the UK, saying this would increase pressure on others to follow.

"There is a huge pressure I think. At some point, step by step, all countries will be aware that the only solution is a two states solution," she said.

In his address at the UN on Monday, US president Donald Trump complained about countries recognising Palestinian statehood.

"We agree on three things with Trump. The first is the release of the hostages, the second is no role for Hamas, and the third is the allowance of humanitarian assistance into the Gaza strip," the Commissioner said.

However, the she said she disagreed with Trump's notion that recognition of Palestinian statehood was a "reward for Hamas" as he reiterated during his speech on Monday.

The situation in the West Bank and East Jerusalem

In the West Bank and East Jerusalem, EU-funded organisations that provide a wide range of support to Palestinians, have repeatedly reported that Israel, and particularly Israeli settlers, obstruct the effective use and implementation of these EU aid programs.

The Commissioner said that it is important for the EU to "engage with Israeli authorities" and both Palestinians and Israelis should find common ground on how to resolve the conflict.