(MENAFN) The European Union has unveiled plans to boost its financial aid for the recovery efforts in Palestine and the Palestinian Authority (PA) to €1.6 billion ($1.8 billion), as announced by the bloc's foreign policy chief on Monday.

“We are stepping up our support to the Palestinian people. €1.6 billion until 2027 will help stabilize the West Bank and Gaza,” Kaja Kallas stated in a post on X.

Kallas highlighted that the EU's funding will prioritize infrastructure development, humanitarian assistance, and support for refugees.

“We are a long-standing partner for the PA,” she added.

The Palestinian Authority currently governs the occupied West Bank, and Western officials have proposed that it should assume additional responsibilities in Gaza in light of the recent Israeli conflict, which has resulted in approximately 51,000 fatalities since October 2023.

The EU indicated that the funding aims to improve services for the Palestinian population, promote recovery and stabilization in both the West Bank and Gaza, and bolster the private sector in Palestine.

Furthermore, the EU plans to create a dedicated "Palestine Donor Platform" to aid the Palestinian Authority in implementing its reform agenda.

European Commissioner for the Mediterranean, Dubravka Suica, noted that the initiative is designed to support the Palestinian people in their quest for a sustainable future.

"A well-functioning and reformed Palestinian Authority must play a central role in post-conflict governance of Gaza," she asserted.

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