Germany Suspends Aid Initially Planned for the Palestinian Authority

SadaNews - Members of the German parliament from the Christian Union opposed providing an additional financial aid of €30 million to the Palestinian Authority, which led to the suspension of the first payment of this aid.

The purpose of providing this aid is to compensate for the tax revenues that Israel is withholding from the Palestinian Authority, according to the German news agency (dpa) from government sources on Friday (September 19, 2025).

German Minister for Development and International Cooperation, Rem Al-Abli-Radovan, announced this aid during her visit to Israel and the Palestinian territories on August 25 and 26. The minister had obtained approval from conservative Chancellor Friedrich Merz, the leader of the Christian Democratic Union party, and his deputy and Finance Minister Lars Klingbeil, leader of the Social Democratic Party.

According to the minister's plans, the funds will be transferred through a mechanism under the European Union, to be used for paying salaries in the health and education sectors in the occupied West Bank.

Clarification on the Allocation of Aid

Alexander Hofmann, a parliament member from the Christian Social Union (CSU), the conservative partner in the ruling coalition, stated in comments to Bild newspaper that "humanitarian aid is important, but the specific projects that will use this money must be clarified before approval."

He added that "projects that threaten Israel's security must be clearly excluded."

During a press conference in Berlin, the spokesperson for the German government, Sebastian Hill, confirmed that there is no disagreement within the coalition regarding the disbursement of the aid, indicating that the government is united on this matter, but clarified that its provision is linked to parliamentary approval.

According to government sources, the funds are designated for paying salaries of teachers and health workers in the Palestinian Authority in the occupied West Bank.

Officials indicated that the funds are likely to be disbursed as soon as the legislators' concerns are addressed.

Palestinian Authority Crisis

A spokesperson for the German Ministry of Cooperation emphasized the importance of this aid amid the acute financial crisis facing the Palestinian Authority, noting that the Israeli government has not transferred for months the funds collected from customs duties and taxes earmarked for the Palestinian territories.

She added that the Palestinian Authority is "on the verge of bankruptcy," significantly impacting public services such as healthcare, as well as delaying the start of the academic year.