Commissioner Ferrero-Waldner's Speech to the London Meeting on Supporting the Palestinian Authority

Summary: March 1, 2005: Speech by Dr. Benita Ferrero-Waldner, Commissioner for External Relations and European Neighbourhood Policy, to the London Meeting on Supporting the Palestinian Authority (London)

I would like to join previous speakers in thanking the British Government, particularly Prime Minister Tony Blair, for taking the initiative of organising today's meeting.

The European Union fully subscribes to the vision of a Palestinian State living side by side with Israel in peace and security. We have been involved from the start in building the institutions necessary for a future Palestinian state - focusing on strengthening the democratic process and promoting good governance, financial transparency and the fight against corruption.

This year, our assistance will be in the order of €250 million, including:

Support for political and financial reform in the Palestinian Authority, partly through an early contribution of €70 million to the World Bank Reform Trust Fund; and
A substantial contribution to the UN Relief and Works Agency (UNRWA).

I also hope that both the Palestinian Authority and Israel will take full advantage of the opportunities provided by our Neighbourhood Policy for better integration with the EU.

Ladies and Gentleman,

In addition to making this firm commitment of financial and political support, I will use this occasion to stress three key concerns.

1. We are at a critical moment in the peace process and it is essential that the Palestinian people see immediate and concrete dividends from the moves towards peace. As we talk about our commitments today we must keep this urgency in mind. For its part, the European Commission will give priority to those fields where I believe our support can bring faster results and provide added value.

2. International Assistance should focus on strengthening Palestinian institutions. We should react to Palestinian plans and initiatives like the PA Medium-Term Development Plan. I invite the Palestinian Authority to elaborate a coherent, Palestinian-owned strategy to which international donors can respond.

3. We, the international donor community, must ensure that our actions are complementary and that we discuss these with a broad range of Palestinian partners. We must also live up to our commitments - past and present. I welcome the fact that many Arab donors are represented here today. This is a strong sign of support which I hope will translate into increased financial assistance and active engagement in the process.

Before closing, let me say a few words about the PA and our support.

In response to the conditions of our past budgetary support, the PA adopted several important institutional and democratic reforms including public finance reforms such as the single treasury account and the Finance Ministry having sole responsibility for the PA payroll. According to the IMF, the PA has "a level of fiscal responsibility, control, and transparency which rivals the most fiscally advanced countries in the region."

Mr. Abbas has set out the PA's programme and reform goals. Let me highlight three areas that I see as priorities and where we will be actively supporting him:

A well functioning judiciary and court system is important not only for the rule of law and security, but also for a smoothly functioning economy and business confidence. The necessary amendments to the Judicial Authority Law should therefore be presented as soon as possible, accompanied by criteria for judges and prosecutors. Our support will be a €7 million programme.
Rapid adoption of the Law on General Elections would mean a better electoral legal framework for the upcoming PLC elections. The role and independence of the Central Election Commission must be strengthened. Our support is in the order of €14 million.
An anti-corruption task force, reporting to the President, would further improve public financial management. We are working with the World Bank Reform Trust Fund to support these reform goals, providing over €5 million in special targeted assistance to train internal auditors and financial controllers.

Ladies and Gentlemen,

We have made a good start on the path of reform. Today is another important step in the right direction. I am confident that, with the help of the international community and Israel's indispensable facilitation, we can help the Palestinian Authority to achieve our shared goals - a stable, functional state, delivering its citizens' needs and living in peace with its neighbours.

Ref: SP05-229EN
EU source: European Commission
UN forum:
Date: 1/3/2005

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