A planned transfer of €30 million from the German government to the Palestinian Authority has been temporarily halted by the CDU/CSU parliamentary group. The move, reported by Bild, follows concerns raised regarding the allocation and potential impact of the funds.
Development Minister Reem Alabali-Radovan (SPD) had secured preliminary agreement from Finance Minister Lars Klingbeil (SPD) and Chancellor Friedrich Merz (CDU) for the transfer intended for the Palestinian Authority led by Mahmoud Abbas. However, members of the Union faction, particularly those involved in budget policy, voiced significant reservations.
CSU regional group leader Alexander Hoffmann confirmed the group’s concerns, stating that further clarification is needed regarding the specific intended projects. While acknowledging the importance of humanitarian aid, Hoffmann emphasized the necessity of ensuring funds are directed towards concrete initiatives and exclude any projects that could potentially compromise Israel’s security.
Despite the temporary pause, government sources indicate that the plan has not been abandoned entirely, with ongoing internal discussions continuing. The rationale behind the proposed transfer is reportedly due to Israel’s cessation of tax revenue payments to the Palestinian Authority in the West Bank, a situation that is reportedly pushing Palestinian structures towards collapse, necessitating German intervention.
CDU/CSU parliamentary group spokesperson for foreign policy, Jürgen Hardt, reiterated the importance of financial support for the Palestinian Authority, asserting its role as a stabilizing force in the region, contrasting with the view held by some in the Israeli government. He acknowledged the need for transparency regarding the use of funds, stating it is “one hundred percent correct” that Germany needs to know where the money is going.
Internal sources suggest a final decision will be reached as part of the standard budgetary process.
