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The EU's Relations with West Bank and Gaza Strip

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The EU's Relations with West Bank and Gaza Strip The EU's relations with West Bank and Gaza Strip Political background and economic development Since the outbreak of the 'Al Aqsa Intifada' in late September 2000, the Palestinian Territories of the West Bank and Gaza Strip have been in a constant state of political turmoil. Official negotiations between Israel and the Palestinian Authority (PA) for a peaceful resolution to the conflict collapsed soon after the Taba talks and violence and terrorist attacks increased dramatically. There have been regular Israeli incursions into and reoccupation of the larger part of Palestinian controlled towns and villages, curfew and severe restrictions imposed on the movement of persons, in both the West Bank and the Gaza Strip. The violence associated with the ongoing conflict had, by the beginning of 2004, claimed the lives of over 3300 people and over 24,000 people had sustained injuries. Closures and curfew, restricting movement of both goods and people, have led to high levels of unemployment, a collapse in investment, a fall in exports and a sharp decrease in labour income from Israel. Together with the destruction of infrastructure and the collapse in domestic revenue, the Palestinian economy has experienced an unprecedented decline since September 2000. GDP per capita fell by more than a quarter in 2002, and by the end of 2002, unemployment had reached a level of more than 40%, and more than 60% of the population were below the poverty line of US$2/day. The publication of the Quartet Roadmap in April 2003 was followed by a period of intense political activity which raised expectations of a breakthrough in Israeli-Palestinian conflict. The Roadmap sets out the steps which need to be taken towards a comprehensive settlement to the Israel-Palestinian conflict by 2005, by which time an independent, democratic and viable Palestinian state should emerge, living side by side in peace and security with Israel and its neighbours. The political horizon set in the Roadmap was confirmed at the Aqaba Summit in June 2003. The European Union, along with the rest of the international community, has put its weight behind this process. In the summer of 2003, Mr Mahmoud Abbas, the first ever PA Prime Minister, brokered a temporary intra-Palestinian ceasefire and engaged in a number of other measures in an effort to meet the Palestinian obligations under the Roadmap and to further the peace process. A spate of horrific suicide bombings, however, in August and September 2003 and the resumption of targeted killings by the Israeli army marked the end of the temporary Palestinian ceasefire and have seriously undermined the peace process. Scores of innocent civilians have been killed or maimed in the process. Prime Minister Abbas resigned in September 2003 and was succeeded by Mr Ahmed Qurei, previously Speaker of the Palestinian Legislative Council. Mr Qurei’s Government was endorsed by the Palestinian Legislative Council on 12 November 2003. Reform of the Palestinian Authority In June 2002, the Palestinian Authority, in response to domestic and international pressure, adopted a wide-ranging programme on reform. A number of important measures were taken, such as the adoption and entry into force of the Basic Law, and legislation on the independence of the judiciary. In February 2003, the Palestinian Legislative Council (PLC) adopted the 2003 budget which was for the first time, made public and posted on the Internet. Significant progress has been made with regard to the management of the PA's public finances, and, in particular the strengthening of financial control. In March 2003 the Palestinian Legislative revised the Basic Law establishing a post of Prime Minister of the PA. Work is currently underway on the preparation of a Palestinian Constitution and the holding of elections. Nevertheless, the reform measures which have been undertaken need to be consolidated, with far greater attention given to effective enforcement, most notably as concerns the rule of law. EU efforts in support of reform a) through financial assistance Support towards Palestinian institution building and reform has long underpinned EU assistance to the Palestinians. Efforts by the EU, through the conditions attached to its financial assistance package to the PA and specific technical assistance programmes, have already produced a number of positive results. Reform conditions have been attached to EU assistance to the PA from the outset. As recognised by the international community at the last Ad Hoc Liaison Committee in Rome in December 2003, “EU budgetary support and its conditions as well as US support, has over the past years been successful in advancing key reform measures such as financial accountability”. The conditionalities attached to EU assistance to the PA have contributed to placing, according to the IMF, “the Palestinian Authority to a level of fiscal responsibility, control, and transparency which rivals the most fiscally advanced countries in the region.” Much however remains to be done. This is a gradual process which needs to be continued in 2004. In order to strengthen the rule of law in the West Bank and Gaza, the European Commission supports the modernisation of the Palestinian judicial system with a programme launched end of 2003. The €7 million judiciary programme seeks to reinforce the judicial institutions created in the Basic Law, provides training to judges and prosecutors, and funds the refurbishment of selected courts. The EU also provides extensive support to the preparation of Palestinian elections as it did in 1996. Legislative, presidential and municipal elections are overdue since many years and have been included in the Roadmap. The Palestinian Prime Minister, Ahmed Qurei, has stated that an early holding of elections is a priority for his government. A new and independent Central Election Commission (CEC) has been established in October 2002 and has presented a comprehensive work plan and budget for the preparation of elections to the PA and prepares for voter registration. However, the legal framework for elections still needs to be updated. The debate on the new draft election law has not been finalised in the PLC. A successful preparation of elections will also depend on Israeli facilitation of movement. In addition to these programmes specifically addressing reform issues, the Commission ensures that part of all financial assistance programmes is devoted to capacity-building for the beneficiaries (e.g. private sector institutions, civil society, municipalities). b) through international fora Another expression of the EU’s readiness to continue support for Palestinian reform efforts is its participation in the Quartet and the International Task Force on Palestinian Reform, which was established in July 2002. Its objective is to monitor and support the implementation of Palestinian civil reforms, and to guide the international donor community in its support for the Palestinian’s reform agenda. The Task Force is composed of the United States, EU, the Russian Federation, the United Nations, Norway, Japan, Canada, the World Bank and the International Monetary Fund. Since its formation, the Task Force has worked with its counterparts to further develop and adapt the reform agenda, which highlights the Parties’ commitments, establishes benchmarks, identifies obstacles to reform, and proposes areas for donor assistance. The Task Force has done this by consulting directly with Palestinian executive and legislative officials, with Palestinian civil society, with the Israeli government, and with the donor community. Day-to-day activities of the Task Force are undertaken through seven Local Reform Support Groups, composed of representatives from the donors working in the West Bank and Gaza, in the areas of Elections (co-chaired by the EU), Financial Accountability (chaired by the EU), Judiciary (chaired by the EU), Legislative Process, Market Economics, Public administration and Civil Service Reform, Local government. These Groups work with the Palestinian Authority to advance the reform plans, monitor implementation, and identify appropriate benchmarks to measure successful implementation of – and barriers that impede - reforms. EU financial assistance to the Palestinians History: assistance before Oslo and beyond European Community assistance to the Palestinians began in 1971, when the first contribution was made to the regular budget of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). This assistance continues to this day, with conventions between the EC and UNRWA governing the Community contribution to the operations of UNRWA in its main fields of operation, primary health and education. In 1980, the EU-9 put forward the Venice Declaration, which expressed support for Palestinian self-determination. Funding then commenced for a variety of NGO projects, in sectors such as health, agriculture, and education. Following the signature of the Declaration of Principles (Oslo accords), a first donor conference was held in Washington, on 1 October 1993. In the context of the conference, the Ad Hoc Liaison Committee (AHLC), an international donor mechanism, was established to coordinate the assistance to the Palestinians. Donors pledged more than $2 billion to the development of the Occupied Territories. The EU committed €250 million in grants for the period 1994-1998, in addition to long term loans from the European Investment Bank. By 1998, the Community had far exceeded this initial pledge with commitments
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