A planned transfer of €30 million from the German government to the Palestinian Authority has been temporarily halted by the CDU/CSU parliamentary group.
According to reports, Development Minister Reem Alabali-Radovan (SPD) had secured the preliminary approval of both Finance Minister Lars Klingbeil (SPD) and CDU leader Friedrich Merz to remit the funds to the Palestinian Authority, led by Mahmoud Abbas.
The move faced immediate and significant pushback, particularly from members of the governing coalition focused on budgetary matters. Alexander Hoffmann, CSU group leader, confirmed concerns regarding the transfer, stating that clarity is still needed concerning the allocation of the funds. While acknowledging the importance of humanitarian aid, Hoffmann emphasized the necessity of ensuring funds are directed towards specific projects and that initiatives potentially jeopardizing Israel’s security are excluded.
Despite the temporary suspension, government officials maintain the possibility of the transfer remains under consideration. An internal source indicated ongoing discussions regarding the matter. Concerns have been raised concerning the Palestinian Authority’s financial stability, stemming from the Israeli government’s withholding of tax revenues destined for the Authority within the West Bank, a situation reportedly pushing Palestinian institutions towards collapse.
CDU/CSU parliamentary group spokesperson for foreign policy, Jürgen Hardt, expressed support for financial assistance to the Palestinian Authority, arguing that it serves as a stabilizing force in the region contrary to some perspectives within the Israeli government. He acknowledged the importance of transparency regarding the use of funds and stressed the need for a clear understanding of how the Palestinian Authority would utilize the resources.
A final decision on the funding is anticipated as part of the standard budgetary process.