Overview

• The SPD-led Development Ministry proposed channeling the €30 million through the EU’s Pegase mechanism to fund salaries in health and education in the West Bank.
• German officials say Israel’s halt of tax and customs transfers has pushed the Palestinian Authority into acute financial distress.
• Union budget lawmakers, including Inge Gräßle, withheld committee approval, demanding clarity on specific projects and guarantees that funds cannot undermine Israeli security.
• Bild and WELT reported that Chancellor Friedrich Merz and Finance Minister Lars Klingbeil had been consulted or signaled assent, a characterization Union budget figures say needs further clarification.
• SPD figures, including Derya Türk-Nachbaur, urge release of the pledged support, while government and coalition partners continue talks on conditions and EU coordination before a final decision.