EU and Italy provide €23 million to East Jerusalem hospitals.

The European Union and Italy have contributed €23 million to the Palestinian Authority to support the reimbursement of medical referrals to East Jerusalem hospitals.

This financial contribution is financed by the European Union (€22 million) and the Italian Government (€1 million).

This contribution is part of the direct budgetary assistance package to the Palestinian Authority, identified at the EU-PA High-Level Political Dialogue on 14 April 2025, to support Palestinian recovery and resilience.

This contribution will enable the Palestinian Authority to fulfill its financial obligations to East Jerusalem hospitals, which are currently under pressure due to the ongoing conflict and economic challenges associated with the war in Gaza. It will also help ensure that these hospitals continue to provide essential healthcare services to Palestinian patients in the occupied Palestinian territories.

Since 2013, the European Union and its Member States have supported the Palestinian National Authority with regular contributions to cover medical referrals to East Jerusalem hospitals, which have now exceeded €213 million. These hospitals are an integral part of the Palestinian healthcare system, providing specialized medical services unavailable in public hospitals.

“With this contribution, the European Union and its Member States reaffirm their firm commitment to ensuring access to essential medical services for all Palestinians at a time when the healthcare sector is severely impacted by the ongoing war in Gaza and escalating tensions in the West Bank,” said EU Representative Alexander Stutzman. “We are firmly committed to supporting the Palestinian Authority in its efforts to strengthen and reform its healthcare system, enhancing efficiency and equal access to essential care for all patients. As the health and humanitarian situation in Gaza deteriorates, we call for the reopening of the crossings to enable the delivery of medical supplies to Gaza hospitals and facilitate the evacuation of critically ill patients to East Jerusalem hospitals.”

In turn, the Italian Consul General, Domenico Bellato, said: “This contribution comes at a time when the Palestinian health system is under severe pressure. Through the PEGASE mechanism, patients can access specialized, high-quality care in East Jerusalem, services that are currently unavailable in the West Bank. Italy’s contributions to PEGASE since 2013 reflect its commitment to supporting the Palestinian Authority in its efforts to strengthen and sustain the Palestinian health system.”

Since 2008, most of the European Union's assistance to the Palestinian Authority has been channeled through the PEGASE Direct Financial Support mechanism, supporting the PA's reform process and various national development plans. PEGASE also supports the PA's recurrent expenditures, particularly the salaries and pensions of civil servants, social allowances paid through the cash transfer program, and part of the costs of medical referrals to East Jerusalem hospitals.

Since February 2008, over €3 billion have been disbursed through the PEGASE mechanism by the European Commission and various development partners, most of which are EU Member States. In addition, the EU provides assistance to the Palestinian people through the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), as well as a wide range of other humanitarian and development cooperation projects.

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