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Source: European Commission
European Neighbourhood Policy (ENP)
26 May 2011

ENP Country Progress Report 2010 — the Occupied Palestinian Territory

The European Commission and the High Representative of the Union for Foreign Affairs and Security Policy published on 26 May 2011 the annual "neighbourhood package", consisting of a communication proposing a reviewed European Neighbourhood Policy (ENP), 12 country reports on developments in 2010, including one on the occupied Palestinian territory, a sector report and a report on the Eastern Partnership.

In 2010 the Palestinian Authority (PA) made steadfast progress in building its capacity to run the future State of Palestine in line with Prime Minister Fayyad's two-year state building plan as acknowledged by the World Bank in its report to the Ad Hoc Liaison Committee in September 2010. Progress in many areas (governance, public finance management) was achieved in a context of occupation with continued Israeli incursions into areas that are formally under the control of the PA. There was also some progress on the rule of law. However, concerns remain about human rights violations and further efforts are needed to strengthen the judiciary.

Reforms were limited to institutions in the West Bank. In the Gaza Strip, the Hamas-led de facto authority imposed a strict military regime and reports confirm a steady deterioration of humanitarian indicators there. The economic and social situation in Gaza remains grim due to the blockade. The EU has proposed a comprehensive package to upgrade the Kerem Shalom crossing, and intends to further contribute to the eventual opening of all Gaza crossings for aid, trade and persons.

The economy of the occupied Palestinian territory continued to grow in 2010 by 9,3 %. In this period, the Palestinian Authority, through fiscal performance broadly in line with the 2010 budget, reduced its fiscal deficit. There was also progress in the implementation of the structural reforms set out in the Palestinian Reform and Development Plan, and reflected in the AP, in particular on improving financial accountability and on sound management of public finances.

The EU and the Palestinian Authority took further steps towards enhancing political dialogue and reform within the framework of the ENP. Work has started on a new Action Plan which is expected to be concluded during the course of 2011. The EU continued to provide considerable support to the PA with a view to contributing to the implementation of the two-state solution.

Situation in the Middle East and Political Dialogue
Economic Integration and Trade
Sector cooperation - Examples


1997: The Palestinian Authority and the EU concluded an Interim Association Agreement on trade and cooperation.

2005: The EU-PA ENP Action Plan was approved.

Due to the continuing emergency situation in the West Bank and Gaza there is no National Indicative Programme (NIP) under the European Neighborhood and Partnership Instrument (ENPI) covering the period 2011-2013. Funding committed under the bilateral envelope of the ENPI to the occupied Palestinian territory for 2010 amounted to €377.9 million.

2004-2010: EU Financial Assistance to the Palestinian people from the EU budget amounted to €2.923 billion, mainly in the form of direct and indirect financial support to the PA, as well as to UNRWA, humanitarian and food aid. Most assistance is channelled through the EU PEGASE Mechanism ("Mecanisme Palestino-Europeen de Gestion de l'Aide Socio-Economique").

For more information: en.htm relations/occupied Palestinian territory/index en.htm en.htm

Local press contacts:
The office of the European Union Representative Antonia Zafeiri, +972 (0) 2 5415 859, +972 (0) 548 024 915 Shadi Othman: +972 (0) 2 5415 867, +972 (0) 599 673 958

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