Overview

• CDU/CSU lawmakers halted the planned payout during budget deliberations, demanding detailed project oversight and guarantees that no funds could threaten Israel’s security.
• Development Minister Reem Alabali Radovan proposed the one-off €30 million to help offset withheld Israeli tax revenues, reportedly with consent from Finance Minister Lars Klingbeil and Chancellor Friedrich Merz.
• The money is intended to flow through an EU mechanism to cover salaries in health and education in the West Bank rather than as a direct transfer to the PA.
• Government representatives say the plan has not been dropped and negotiations with coalition partners and the Bundestag are ongoing, with further committee discussions expected.
• Israel’s freeze on PA tax transfers since May has driven an acute cash crunch that officials and experts warn could destabilize the West Bank, while SPD figures urge swift, conditional approval excluding any role for Hamas.