Already in the first hours after the terrorist attack on Israel by the radical Islamic Palestinian militia Hamas, the federal government came under pressure on a sensitive issue. What should happen next with tax-financed aid to support the people in the Palestinian territories? For Development Minister Svenja Schulze (SPD), through whose office the majority of the projects are run, it quickly becomes clear that everything now has to be put to the test. All payments have currently been suspended, she said on Monday.
The European Union – the most important international donor to the Palestinians – also wants to at least review its development aid payments. The responsible EU Commissioner, Olivér Várhelyi, initially announced on Monday that all payments from Brussels to the Palestinians would be suspended. After several EU states publicly protested against this and demanded that money from Europe continue to flow for humanitarian aid in the Palestinian territories, the Commission corrected itself. In the evening there was only talk of a review of development aid. Since there are currently no transfers to the Palestinian Authority, no payments need to be suspended, according to a press release.
There are also increasing calls to take tougher action against Iran. The regime supports Hamas and has applauded the attacks but denied direct involvement. Schulze said that the federal government now wanted to discuss with Israel what development projects there should be for the Palestinians in the future and how they could support peace in the region. This is a sign of “unwavering solidarity with Israel.”
Up to 340 million euros come from Germany every year
On Sunday the minister, at the request of the South German newspaper said that they had already been “strictly careful to ensure that our support for the people in the Palestinian areas serves peace and not terrorists.” Given the shock of the events, they wanted to “make sure that we don’t have any channels through which anything can come out,” she added. It is impossible to say how long this review process will take. This will be done “thoroughly and solidly”.
So far, Germany has spent up to 340 million euros annually on the people in the Palestinian territories. There are current commitments of around 250 million euros through Schulze’s Ministry for Development and Economic Cooperation, the rest is through the Foreign Office. The development aid ministry has so far financed projects for water supply, waste disposal, the health system, food security and job creation, among other things. There is therefore no direct financing for the Palestinian Authority.
Around 125 million euros go to bilateral projects through the federally owned German Society for International Cooperation (GIZ) and the Kreditanstalt für Wiederaufbau (KfW). There is also a similar amount for the United Nations Relief and Works Agency for Palestine Refugees in the Middle East, UNRWA, as well as non-governmental development cooperation.
The Central Council of Jews is calling for development aid to be stopped immediately
The Federal Foreign Office is currently contributing a further 79 million euros, of which 72 million euros are for humanitarian aid. A spokesman said a large part had already been paid out to international organizations. Vital assistance such as food supplies should also continue. At 42 million euros, more than half of the money for food aid in the Gaza Strip goes to UNRWA, while the federal government pays a further 26.2 million euros to the World Food Program, the UN Emergency Relief Fund and the International Committee of the Red Cross.
The Federal Government provides humanitarian aid in accordance with the principles of international humanitarian law, which is based on need. 6.3 million euros from the Federal Foreign Office’s budget are also earmarked for stabilization projects, such as establishing constitutional structures or basic water and energy supplies. The majority is handled by GIZ. These projects will be reviewed again.
FDP leader Christian Lindner called for all payments to the Palestinian territories, including via the EU and UN, to be checked and frozen; The FDP Presidium made a corresponding decision. CDU foreign politician Roderich Kiesewetter called for strict scrutiny to ensure that no money is diverted. Until then, payments would have to be frozen. The President of the Central Council of Jews, Josef Schuster, demanded that development aid be stopped immediately.
EU support could become an issue on Tuesday
In Brussels, the EU Commission emphasized that it was very clear that the EU was not yet directly or indirectly funding Hamas or other terrorist organizations. Around 1.18 billion euros were earmarked for the Palestinians from the EU budget alone for the period 2021 to 2024. A spokeswoman emphasized that the EU has very strict rules for checking recipients. Everyone would have to assure that these did not go directly or indirectly to companies, organizations or people connected to Hamas.
The EU supports the Palestinian Authority, which rules in the West Bank, with significant resources. According to the EU, the total amount in 2022 was 296 million euros. This is used to finance development aid and infrastructure projects, but also the salaries and pensions of employees of the autonomous authority as well as schools and hospitals. The decision on EU aid ultimately lies with the governments of the 27 member states; it could become a topic at the emergency meeting of foreign ministers this Tuesday.
With regard to Iran, FDP General Secretary Bijan Djir-Sarai and CDU foreign policy expert Norbert Röttgen confirmed that the Revolutionary Guards must be placed on the EU’s terror list. The Federal Foreign Office, based on a legal opinion from the EU Foreign Service, has so far considered the high legal requirements for this to have not been met. The European Court of Justice has canceled such listings several times.
The chairman of the Foreign Affairs Committee in the Bundestag, Michael Roth (SPD), said that it had to be about “isolating Iran even further. Because Iran is involved in many military conflicts.” With regard to the nuclear agreement, Roth warned that Iran should be viewed as a serious discussion partner. “We will probably have to abandon the idea that anything can be achieved through negotiations with such a terrorist regime,” he said.