Contribution to PEGASE in Support of the Palestinian Social Protection System ("Social Allowances") 2016
The overall objective of this temporary EU support is to maintain the viability of the
two-state solution by avoiding the fiscal collapse of the PA and sustaining basic
living conditions of the whole Palestinian population.
The specific objective is to support the Palestinian national development agenda and
(1) to support the PA to deliver to the Palestinian population essential basic services
by maintaining the functioning of the administration;
(2) to improve the economic opportunities of poor, vulnerable and isolated
(3) to support the PA in reducing its budget deficit and implementing its reform
agenda while increasing the PA's transparency and accountability.
Three categories of public expenditure are in principle eligible for support under this
action, for a total amount of EUR 130 million which follows previous Decisions
committed on 2008, 2009, 2010, 2011, 2012, 2013 and 2014 funds. Component 2 is "Supporting the Palestinian social protection system" (indicative allocation EUR 40 million).
The EU will contribute to the quarterly payment of social allowances to poor and
vulnerable Palestinian families in the West Bank and the Gaza Strip through the PA's
national cash transfer programme (CTP). The objective of this activity is to ensure
the continued assistance to Palestinian families living in extreme poverty, who are
dependent on financial aid from the PA. This activity also reinforces the reform of
the social protection system and the social cohesion among Palestinians.
The aim is to support households living in extreme poverty in the West Bank and Gaza, eligible to receive cash assistance under the cash transfer programme (CTP) run by the PA Ministry of Social Affairs (PA MoSA). Households are assessed individually to verify eligibility and level of assistance on a regular basis. Eligible households receive scaled allowances, determined on the basis of household size and welfare status, ranging from a minimum ILS 750 to a maximum ILS 1,800 (approx. EUR 160 to EUR 385) per quarterly payment.
The Austrian contribution usually is part of the first quarterly payment of social allowances, i.e. this Austrian contribution is planned to contribute to the spring 2016 payment. In total, each quarterly payment (to which other donors contribute, too) amounts to approximately 10.000 EUR and reaches around 50.000 Palestinian families - or 300.000 people - in need.
Most of the European Union's assistance to the Palestinian Authority (PA) is
channelled through PEGASE2, the financial mechanism launched in 2008 to support
the Palestinian Reform and Development Plan (2008-2010) and the subsequent
Palestinian National Development Plans (PNDP) developed for the periods 2011-
2013 and 2014-2016 with the aim to build strong governmental institutions as the
basis for the future independent Palestinian State. These national plans set out
medium-term agenda for Palestinian reform and development and contain a
framework of goals, objectives and performance targets. Through PEGASE Direct Financial Support (DFS), the EU has contributed
substantially to the recurrent expenditure of the Palestinian national budget (over
1 This designation shall not be construed as recognition of a State of Palestine and is without prejudice to individual
positions of the Member States on this issue.
2 Mécanisme Palestino-Européen de Gestion de l'Aide Socio-Economique.
EUR 1.7 billion since 2008), with systematic, predictable and unconditional
contributions to the payment of PA civil servant's salaries and pensions (window
'CSP') and of social allowances to the poorest and most vulnerable Palestinians
families (window 'VPF').