On Friday, September 26, 2025, twelve countries—including France, the United Kingdom, Japan, Saudi Arabia, and Spain—announced the formation of a coalition aimed at providing financial support to the Palestinian Authority, which suffers from a severe funding shortage due to Israel’s withholding of its tax revenues. This announcement comes amid an unprecedented financial crisis threatening the Authority’s ability to deliver essential services and maintain regional stability.
Coalition Goals and Members
The “Emergency Coalition for the Financial Sustainability of the Palestinian Authority” was launched in response to the “urgent and unprecedented financial crisis” facing the Authority, according to a statement by the Spanish Ministry of Foreign Affairs. The coalition aims to:
- Stabilize the financial situation of the Authority headquartered in Ramallah.
- Preserve its capacity to govern, provide core services, and maintain security.
- Support regional stability and uphold the two-state solution as a strategic peace option.
Besides the five main countries, the coalition includes Belgium, Denmark, Iceland, Ireland, Norway, Slovenia, and Switzerland. The Spanish statement highlighted previous significant financial contributions and commitments for “sustained support” from members, inviting other countries and international organizations to join, describing the support as “an investment in peace and regional security.”
Financial Support Commitments
The office of Palestinian Prime Minister Mohammed Mustafa reported that donors pledged at least USD 170 million to fund the Authority. Among major commitments, Saudi Foreign Minister Prince Faisal bin Farhan announced a Saudi contribution of USD 90 million last Thursday, according to official Saudi media. This support is part of a “sustainable and coordinated” approach involving cooperation with international financial institutions to enhance governance and support economic reforms.
Financial and Political Context
The Palestinian Authority relies on tax revenues collected by Israel on its behalf under the 1994 Paris Protocol. However, since the outbreak of war in Gaza on October 7, 2023—following Hamas’s unprecedented attack on Israel—Israel has withheld these revenues, causing deterioration in vital services like health and education and increasing poverty rates among Palestinians. The Authority claims this withholding threatens its stability, while Israeli authorities justify the measure as covering debts such as electricity bills provided to Palestinians.
The far-right Israeli Finance Minister Bezalel Smotrich, who has suspended all payments to the Authority for four months, openly stated his aim to “economically strangle the Authority” to topple it and prevent the establishment of a Palestinian state.
International Context and Timing
The coalition’s announcement comes amid international shifts, with traditional Israeli allies such as France and the UK, along with other European countries, recognizing the Palestinian state during the UN General Assembly held this week in New York. This support signals growing international consensus on the necessity of backing the Palestinian Authority as a partner for peace, amid fears that its collapse could create a security and regional vacuum.
Conclusion
The coalition’s establishment marks a crucial step toward alleviating the Palestinian Authority’s financial crisis, emphasizing sustainable support as an investment in regional peace. However, the biggest challenge remains the release of withheld tax revenues, requiring intensive diplomatic efforts. For updates, it is recommended to consult official statements from the Spanish Ministry of Foreign Affairs or the Palestinian Prime Minister’s office.
فاس نيوز ميديا جريدة الكترونية جهوية تعنى بشؤون و أخبار جهة فاس مكناس – متجددة على مدار الساعة