The European Union has suspended all payments and projects for the Palestinians and launched a comprehensive assessment of its development portfolio, worth 691 million euros ($728 million).
The move comes after the Hamas attack on Israel, which the EU condemned as a “turning point” in the conflict.
The EU Commissioner for Neighbourhood and Enlargement, Oliver Varhelyi, announced the decision on X on Monday.
He said, “All payments are immediately suspended. All projects are put under review. All new budget proposals, including for 2023 postponed until further notice. Comprehensive assessment of the whole portfolio.
“The scale of terror and brutality against #Israel and its people is a turning point. There can be no business as usual. As the biggest donor of the Palestinians, the European Commission is putting its full development portfolio under review, worth a total of EUR 691m.”
Varhelyi stressed the need for action to address the root causes of the violence.
He said, “Incitement to hatred, violence and glorification of terror have poisoned the minds of too many. We need action and we need it now.”