Commission Statement on the Situation in the Middle East

European Parliament Plenary Session, Strasbourg

04 September 2001

As everyone in this Parliament knows, the situation in the Middle East is very serious. The continuing violence, the endless recriminations and the refusal of the parties to rise above their grievances and choose the path of peace is not only regrettable but also frustrating for all in the international community who are trying to help find a way out of the current impasse. Both parties have failed to seize the basis offered by the recommendations of the Mitchell report and under the Tenet plan.

There has been a lot of diplomatic activity as Javier Solana and several Foreign Ministers have pursued efforts to bring Israelis and Palestinians together and to get them to return to the negotiating table. We must continue to urge all concerned to implement immediately all the recommendations of the Mitchell report. These represent the best basis for restarting peace talks.

We must also urge the parties to reduce the level of distrust which has been built up in recent months. They must reaffirm their commitment to the fundamental long-term goals of the Middle East Peace Process: secure borders for Israel through the negotiated establishment of a viable Palestinian State on the basis of the relevant UN resolutions.

To end the cycle of violence and to weaken the position of radical forces, Palestinians need to see a real prospect of an improvement in their daily lives. This should include the implementation of existing agreements between Israel and the Palestinians: for a start lifting of the closures; transfer of tax revenues, safe passage between Gaza and West Bank, re-opening the airport, and creating export facilities that will allow Palestinians to benefit from their agreements with the EU and other partners.

Third party monitoring of the proper implementation of those agreements and a functioning dispute settlement mechanism would help to address Palestinian frustration with the current non-implementation of existing agreements. All this would bring about a revival of the Palestinian economy, give Palestinians a stake in their own futures and improve the prospect for a better future to be achieved by political negotiations.

These efforts need to be supported by a range of confidence-building measures to overcome the current deep distrust not only between the leading politicians but also between the two peoples. The Commission has allocated in the past two years alone some € 50 million to peace-building programmes fostering Israeli-Arab and Israeli-Palestinian co-operation in particular. These programmes promote peace building through joint projects and awareness campaigns for tolerance and peace.

The Commission stands ready to use all the instruments available to it to help alleviate the severe financial difficulties facing the Palestinians.

Our package of support for the Palestinian Authority is being a successful example of how the EU can deliver assistance in a sensible, fast and effective manner. EU support for the Palestinian Authority budget is secured until November and the Arab States are currently considering extending their budgetary support until the end of the year. It is still too early for any concrete announcement regarding further Commission intervention. We have just reached mid-term in our current support operation and are awaiting Palestinian compliance with a number of conditions to be followed by an evaluation and assessment of the macroeconomic and fiscal outlook.

Palestinian needs in 2002 and contributions of other donors will have to be looked at in the context of an assessment of the economic situation in the Palestinian territories currently undertaken by the World Bank. It is expected that this exercise will be concluded by end-September. Once this data is available the Commission will consider how best to contribute further to international efforts.