25 March 2011 – In 2010, living conditions further deteriorated for the major part of the Palestinian population. The blockade of the Gaza Strip, the massive restrictions on the freedom of movement in the West Bank and the continuing isolation of the occupied territories from the outside world make daily life for the Palestinians a new challenge every day. The situation in the Gaza Strip is particularly precarious: 70 per cent of the inhabitants live on less than one dollar a day, 60 per cent have no access to drinking water and 75 per cent are compelled to resort to food aid.

"Reliable partners and solidarity are particularly important for those affected by poverty and isolation. We therefore are once more making a direct contribution to socially disadvantaged groups in the occupied territories," stated Foreign Minister Michael Spindelegger, commenting on the latest aid payments within the framework of the European Commission’s PEGASE mechanism (Palestinian-European mechanism for socio-economic assistance).

By introducing the PEGASE mechanism in 2008, the EU established a new basis for its support for the Palestinian Territories. The tool was originally designed for three years, but will now be extended. Austria has been one of the contributors from the very beginning, and will contribute one million euros this year. The funds are mostly used to support destitute families in the West Bank and in the Gaza Strip: "With our contribution we help to improve the living conditions of some 58,000 families in need," continued the Foreign Minister.

Austria was the first European member state to remit its PEGASE contribution directly to the European Commission: "The joint European mechanism has proved successful in the past few years and is therefore being extended. By making direct payments to the European Commission we increase the efficiency of European development cooperation," concluded the Foreign Minister.

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