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Palestinian Territories - Achievements

The European Commission’s Progress Report the occupied Palestinian Territory concludes that the political situation in the occupied Palestinian territory during 2006 and the first half of 2007 did not allow progress in the bilateral co-operation with the Palestinian Authority within the European Neighbourhood Policy.

The EU is now ready to re-launch the implementation of the EU-PA Action Plan. A Joint Committee meeting with the Palestinian Authority is scheduled for Spring 2008.

Efforts by the Government of Prime Minister Fayyad in areas like the security sector, fiscal redress, and governance are noticeable. Palestinian police has enhanced security in Nablus. The Ministry of Finance has taken bold steps to restore the functioning of public finances.

The European Commission commended the PA Government’s efforts to produce the Palestinian Reform and Development Plan 2008-2010, which sets out the vision of the future Palestinian state.

To scale up efforts to relieve the socio-economic crisis, the Commission launched in June 2006 a Temporary International Mechanism (TIM) to provide basis assistance to the Palestinians without going to or passing through the Hamas-led government. The Commission gave a total of € 455 million to TIM, and substantial funds were also provided by the EU Member States, brining the overall EU contribution to over €616 million. Some 150.000 Palestinian households directly received social allowances from the TIM, while 1.3 million people in Gaza benefited from fuel deliveries for hospitals and from water supply and sanitation.

Building on this success, the new European financial mechanism PEGASE replaced the TIM in February 2008. The mechanism channels assistance in support for the three year Palestinian Reform and Development Plan 2008-2010, which was presented to the Paris Donor Conference. PEGASE provides a predictable and stable flow of assistance to the Palestinian Authority and will support its reform efforts. It supports a broad range of activities in the areas of governance, social and economic development, and public infrastructure.

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