The European Neighbourhood Instrument (ENI) is the main EU financing instrument for Palestine.

Aid is allocated along with a multiannual bilateral agenda for economic and political cooperation. From 2014 till 2016, this agenda was articulated in the Single Support Framework, which as from 2017 has been replaced by the "European Joint Strategy in support of Palestine 2017-2020 – Towards a democratic and accountable Palestinian State". It is the fruit of several years of work between the EU and its Member States and sets out targeted and mutually shared priorities of EU and the Member States cooperation with Palestine developed through the last years. It mirrors financing assistance to a coherent EU foreign policy approach.

For the period 2017-2020, the EU's bilateral assistance to Palestine under the ENI will focus on the following priority sectors:

• Governance Reform, Fiscal Consolidation and Policy.
• Rule of Law, Justice, Citizen Safety and Human Rights.
• Sustainable Service Delivery.
• Access to Self-Sufficient Water and Energy Services.
• Sustainable Economic Development.

The indicative multi-annual financial ENI allocation for 2017-2020 is between €1.11 billion and €1.356 billion

The European Joint Strategy is in line with the Palestine National Policy Agenda (NPA) 2017-2022, adopted by the Palestinian Authority in December 2016 and follows up on the priorities of EU cooperation with Palestine developed over the last years.

The Palestinian Cash Transfer Programme (CTP) provides quarterly cash assistance to some 108,000 poor and vulnerable families in the West Bank and the Gaza Strip. It is part of the social protection system managed by the Ministry of Social Development (MoSD).

PEGASE supports the Palestinian Authority (PA) as the duty bearer to deliver basic social protection in a predictable and regular way. Over the period 2008-2018, the EU and EU Member States contributed €478.2 million to the CTP through PEGASE.

In 2018, the PA allocated ILS 480 million (€113.9 million) to the CTP. The EU and the Member States contributed to 50% of the allowances, the World Bank 5% and the rest was covered by the PA (source: CTP payment report 2018 and CTP Global Assessment 2018).

CTP beneficiaries are selected according to a consumption-based proxy means test formula (monetary and assets related criteria) that estimates a poverty score for each applicant household. Social workers of the Ministry Regional Directorates are in charge of regular updates of the family records and eligibility re-certification. A complaint mechanism is also in place.

Eligible households receive a monthly allowance of between ILS 250 to ILS 600 paid on a quarterly basis. The annual average family allowance is ILS 4,600 (€1,106). Families are also entitled to other state-provided assistance, including free health insurance from the Ministry of Health, food assistance, and school fee waivers from the Ministry of Education. The CTP contributes to protecting beneficiaries' livelihoods by maintaining household consumption and covering basic needs according to the 2017 World Bank impact evaluation of the CTP but is not enough to graduate them out of poverty.

EU-funded development programmes in Palestine are in line with priorities set by the Joint Strategy, in line with the Palestinian Authority National Policy Agenda and focus on five main areas (with a focus on Gaza and Area C development). In addition, every year between €8 and 15 million are allocated for projects in East Jerusalem, which is a key priority to keep the two-state solution alive. In 2017, the contribution for the East Jerusalem Programme amounted to €14.9 million. Additional information about EU-funded projects is available on our interactive online map.