Press release 24 July 2008
Ministry for Foreign Affairs

Sweden increases its support to the Palestinian Authority

Today the Government decided to earmark SEK 50 million for direct support to the Palestinian Authority.

"The Palestinian Authority is in a difficult economic situation and risks collapse if wage and other payments cannot be made. A functioning Palestinian Authority is a prerequisite for a peaceful and sustainable solution to the Israeli-Palestinian conflict. Consequently it has been a matter of urgent concern to us to be able to give Prime Minister Fayyad a speedy and positive response," says Minister for International Development Cooperation Gunilla Carlsson.

Sweden is one of the largest donors to the Palestinians. Total Swedish support for 2008 is estimated at approximately SEK 700 million. A small part of this Swedish aid has already been transferred as direct support earlier this year. During the spring it has become increasingly clear that the Palestinian Authority needs substantial budget support and Prime Minister Fayyad´s appeal for increased direct support has received widespread attention, including from the international community's lead body for donor coordination, the Ad Hoc Liaison Committee (AHLC).