Brussels, 17/06/2014 (Agence Europe) - On 16 June, the Council of the EU took note of some of the recommendations in the EU Court of Auditors report on the EU's direct financial support to the Palestinian Authority (PA) via the PEGASE mechanism. The report was very critical.
This December 2013 Court of Auditors report calls for an in-depth review of the direct financial aid granted by the EU to the PA, and believes that this review is crucial (see EUROPE 10982). Between 2008 and 2012 (the period covered by the report), the EU granted €1 billion in direct financial support through the PEGASE programme.
The Council welcomed the fact that the Court of Auditors had stressed that the European Commission and the European External Action Service (EEAS) “have succeeded in implementing direct financial support in spite of difficult circumstances, that the financial procedures put in place are robust and that there is no evidence of corruption, mismanagement or diversion of funds”. It took note of the Court's recommendations, underlining that the majority of them had already been implemented. Noting that, according to the Court, some aspects of the PEGASE mechanism should be reviewed in order to ensure the mechanism's sustainability, the Council suggested that “specific risk assessments beyond the eligibility criteria could also be considered”.
While the Court suggested in its report that the programme for employees in Gaza should be suspended, and while it criticised the fact that civil servants are remunerated when they do not work, the Council underlined that it was “politically important to continue supporting the Palestinian Authority's decision to pay its workers in the Gaza Strip as a key element of maintaining the PA's presence in Gaza and the unity of a future State of Palestine”. The EEAS and the Commission agreed to begin discussions with the PA in order to find a solution which might take account of the Court's concerns, while enabling the PA to continue supporting its employees in Gaza, the Council explained.
As regards conditionality, the Council noted that it was essential that performance indicators be introduced, while bearing in mind that many of the elements required to fulfil these indicators lie partly or wholly outside the control of the PA. In line with one of the recommendations of the Court, the Commission has already started providing comprehensive support to the PA for its civil service reform. “The Council calls on the PA to accelerate reforms in its civil service [and] to proceed with reforms in public finance management”, it added. The Council also underlined the importance of recognising “the complex and difficult political circumstances” of the EU's co-operation with the PA. Acknowledging that the Commission and the EEAS have “actively” sought to ensure Israeli cooperation in the implementation of EU direct financial support to the PA, the Council called on the Israeli authorities to take steps that would render the EU's financial assistance more effective. (CG)