On 9th October (Monday), Austria and Germany announced that they had decided to suspend aid worth tens of millions of euros to Palestinians in response to the Hamas terrorist attack on Israel. They added that the decision had been taken to ensure funds were not flowing into the wrong hands. Both countries asserted that they wanted to review their engagement with the Palestinian territories and discuss it with Israel and international partners.
Following the announcement of their decision, the European Union (EU) also joined them in supporting Israel over this issue. The European bloc announced that it has also put all its development funding to the Palestinian territories under review in response to Hamas’s attack on Israel.
The scale of terror and brutality against #Israel and its people is a turning point.
— Oliver Varhelyi (@OliverVarhelyi) October 9, 2023
There can be no business as usual.
As the biggest donor of the Palestinians, the European Commission is putting its full development portfolio under review, worth a total of EUR 691m
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Taking to X, the European commissioner for the EU neighbourhood, Olivér Várhelyi wrote, “The scale of terror and brutality against Israel and its people is a turning point. There can be no business as usual.”
He added, “All payments [are] immediately suspended. All projects are put under review. All new budget proposals, including for 2023 [are] postponed until further notice. Incitement to hatred, violence, and glorification of terror have poisoned the minds of too many. We need action and we need it now.”
The foundations for peace, tolerance and co-existence must now be addressed.
— Oliver Varhelyi (@OliverVarhelyi) October 9, 2023
Incitement to hatred, violence and glorification of terror have poisoned the minds of too many.
We need action and we need it now.
Notably, this decision will affect €691mn in aid earmarked for Palestine.
Earlier, Austrian Foreign Minister Alexander Schallenberg stated that the country was suspending aid worth around 19 million euros ($20 million) for a handful of projects.
Speaking with ORF radio, Schallenberg said, “The extent of the terror is so horrific … that we cannot go back to business as usual. We will therefore put all payments from Austrian development cooperation on ice for the time being.”
Schallenberg did not distinguish between Gaza, a Palestinian enclave ruled by Hamas, and the West Bank run by the Western-backed Palestinian Authority led by President Mahmoud Abbas.
In recent years, Neutral Austria’s ruling conservatives have adopted one of the most pro-Israel stances in the European Union. On 7th October (Saturday), the Israeli flag was hoisted above the chancellor’s office and the Foreign Ministry after Hamas launched a surprise attack on Israel including attacking with rocket barrages and ground invasion by terrorists.
While Berlin stated that it wanted to ensure that it was fostering peace in the region and sending a sign of solidarity.
Notably, Development Minister Svenja Schulze of the Social Democrats informed that no payments were currently being made for bilateral aid projects as Berlin re-examined its engagement with the Palestinian territories.
At a news conference, she said, “This is also an expression of our unbreakable solidarity with Israel. We are in contact with our partners there and reviewing everything again.”
For the current financial year and next year, Germany’s development ministry has earmarked 250 million euros in development funds for bilateral projects in the Palestinian territories. However, it has not specified how much of that it had already disbursed this year.
In recent days, German politicians have underscored their country’s particular duty toward Israel and its security, given the historic responsibility for the Holocaust. On 7th October (Saturday night), the Israeli flag was projected onto Berlin’s iconic Brandenburg Gate.
Responding to the query about whether Britain planned to follow Austria and Germany, the spokesperson for Prime Minister Rishi Sunak stated that Britain had previously provided aid to Palestinian refugees via the United Nations and he was not aware of plans to change the approach.
Additionally, an EU top diplomat informed that European Union foreign ministers will hold an emergency meeting on Tuesday to discuss the situation, including reviewing aspects of development aid.
Europe is a primary contributor of development assistance to the Palestinian population, implying that these decisions could carry significant consequences if they inspire other countries to take similar actions.
Meanwhile, the Israel-Hamas war has entered into its third day. Reports from Israeli local media suggest that around 700 people were killed across the country in the Hamas terror attack. The number continued to rise as more bodies were being recovered. Israel has officially declared war in the wake of the terror attacks.
