Berlin is tightening controls on development aid to the Palestinian Authority (PA) following revelations that funds may have been channeled to individuals linked to terrorism, including those released from Israeli prisons following the recent ceasefire. A parliamentary response from the Federal Ministry for Economic Cooperation and Development (BMZ), reported by the Frankfurter Allgemeine Zeitung, confirms Germany’s determination to prevent such occurrences moving forward.
The move follows reports from Israeli media alleging that Palestinian individuals, recently released from Israeli custody, received substantial payments, potentially reaching $700,000 each, from the PA. These payments, reportedly totaling around $70 million, have ignited criticism regarding the potential misuse of international aid and raised serious questions about the PA’s commitment to combating terrorism.
Under the leadership of Development Minister Reem Alabali-Radovan (SPD), BMZ has pledged to block funds, both through bilateral German aid and EU mechanisms like PEGASE, from being used to provide what are known as “martyr payments” to Hamas operatives or their families. This practice, under which individuals or their dependents are compensated for actions deemed acts of martyrdom, has long been a point of contention in the region.
While Germany intends to maintain project-based support for the PA under President Mahmoud Abbas, including participation in Gaza reconstruction efforts, the new measures reflect heightened scrutiny. Though Abbas officially suspended these payments earlier this year under U.S. pressure, the recent revelations have intensified concerns about the efficacy of these suspensions.
BMZ states that until the PA’s social safety net system undergoes comprehensive reform, no funds will be directed towards it through the EU-PEGASE mechanism. The EU is expected to release a report in November assessing the PA’s progress in reforming its social welfare system.
The allegations of financial windfalls for released Palestinian prisoners – some reports suggesting that approximately 160 individuals became ‘millionaires’ in local currency – underscore the complexities and potential for systemic failings within the PA’s financial structures. Critics argue that these developments highlight a need for far greater transparency and accountability in the distribution of international aid and demand a fundamental reassessment of Germany’s and the EU’s engagement with the Palestinian Authority. The effectiveness of these new controls and the subsequent EU report will be crucial in determining the future trajectory of German-Palestinian relations and the broader commitment to combating terrorism in the region.