Southern Neighbourhood
Economic development and social dialogue


On Thursday, September 3, 2020, the European Union provided financial assistance of 9 million euros for the payment of July salaries of workers in the health and education sectors, as well as for the pensions of more than 37.500 Palestinian civil servants in the West Bank.

As part of the “Team Europe” project, this financial contribution aims to help the Palestinian Authority maintain basic public services. Thanks to this grant, the Palestinian Authority, which is facing budgetary difficulties caused by the pandemic and the current political situation, will be able to pay civil servants and pensioners in the West Bank. 

Introduced in 2008, the PEGASE direct financial support mechanism has enabled the European Commission and its various development partners, such as EU member states, to disburse more than €2.8 billion in aid to the Palestinian Authority. 

PEGASE, designed to accompany the reform process and the Palestinian Authority’s various national development plans, covers the Palestinian Authority’s recurrent expenses, mainly the salaries and pensions of civil servants, social benefits paid under the cash transfer program and part of the costs of transferring patients to hospitals in East Jerusalem.