The EU has been working with the Palestinian Authority to build up the institutions of a future democratic, independent and viable Palestinian State living side by side with Israel and its neighbours. These efforts are regularly debated by the EU Council of Ministers.
The Action Plan concluded with the Palestinian Authority set up the agenda of the economic and political cooperation with the EU. The legal basis for the EUs relations with the PA is the Interim Association Agreement on Trade and Cooperation signed with the PLO on behalf of the Palestinian Authority.
The European Commission is the biggest donor of financial assistance to the Palestinians.
Community support for the Palestinian Reform and Development Plan is channelled through the new PEGASE mechanism, replacing the Temporary International Mechanism. The European Union - European Commission and EU Member States - is the largest donor to Palestine refugees through UNRWA [58 KB] .