German Lawmakers Delay Emergency Payment for Palestinian Authority Salaries

A proposed €30 million one-time payment from Germany to the Palestinian Authority has been delayed due to concerns raised by members of the parliamentary budget committee. The payment was intended to support the salaries of teachers and healthcare workers amid a worsening financial situation in Palestinian-administered areas of the West Bank.
The Palestinian Authority has faced increasing financial pressure since Israel began withholding customs and import tax revenues that it collects on the Authority’s behalf. According to Palestinian officials, approximately $3 billion has been withheld.
The German government intended to announce the aid package next week, aligning it with expected declarations from several European countries recognising a Palestinian state. The payment was arranged by Development Minister Reem Alabali Radovan during a recent trip to the Middle East and has the support of both Chancellor Friedrich Merz and Deputy Chancellor Lars Klingbeil.
However, parliamentary approval is required before the funds can be released. Conservative lawmaker Alexander Hoffmann, a member of the budget committee, expressed reservations about the initiative.

“We need more clarity,” he said. “Humanitarian aid is important but it has to be clear what projects are being funded… Projects that endanger Israel’s security have to be clearly excluded.”

A spokesperson for the German Development Ministry emphasised the urgency of the situation:

“The Authority is in an acute financial emergency,”

the spokesperson said during a government press conference, noting that the beginning of the school year had already been delayed due to the funding shortfall.
While countries such as France and the United Kingdom are expected to announce formal recognition of a Palestinian state at the upcoming United Nations General Assembly, Germany is not expected to join them. German policy has historically favoured strong support for Israel, rooted in the country’s responsibility for the Holocaust.
Nevertheless, recent statements from German leaders reflect a shift in tone. Following Israeli Prime Minister Benjamin Netanyahu’s announcement of plans to militarily occupy Gaza—nearly two years after the Hamas-led attack that triggered the current conflict—criticism from Berlin has grown. During a visit to Madrid on Thursday, Chancellor Merz commented that Israel’s actions in Gaza were “not proportionate to its stated goals” and indicated that Germany might support potential EU sanctions against Israel.