Masked militant in front of Hamas flag during Israel-Hamas conflict. Symbolic image representing the ongoing Middle East crisis between Israel and Palestinian territories.
Credit: Shutterstock, tanitost
The EU has just promised €1.6bn to Palestine. Is it a step toward peace – or a risk of indirectly strengthening Hamas? Here’s what the facts show.
As Israeli bombs rain down and hospitals buckle under fire, the European Union has unveiled a colossal €1.6 billion aid package to support Palestinians in the West Bank, East Jerusalem, and Gaza – a bold move that signals Brussels’ long-term bet on peace and stability in the region.
More than a third of the funding – over €533 million – will go directly to the Palestinian Authority (PA) over two years to improve governance, boost financial sustainability, and help get the private sector back on its feet. ‘It’s about the governing capacity. It’s about advancing economic recovery. It’s about strengthening the resilience of the private sector,’ said EU Commissioner Dubravka Šuica, following talks with Palestinian Prime Minister Mohammad Mustafa. She was blunt about Brussels’ position: ‘A well-functioning and reformed Palestinian Authority must play a central role in the post-conflict governance of Gaza.’
Where’s the money going?
€576 million for development projects across the Palestinian territories.
€82 million to UNRWA, the UN agency for Palestinian refugees.
Up to €400 million in low-cost loans to stimulate private enterprise.
The timing couldn’t be more tense. On Sunday, April 13, Israel struck Al-Ahli Hospital in Gaza City, following an evacuation warning. The Hamas-run Health Ministry said a patient died during the rushed evacuation. Israel claimed the hospital was being used as a Hamas command centre and said it took steps to minimise casualties – a claim Hamas vehemently denied, calling the strike a “new war crime”.
A war with no end in sight
The current conflict began with Hamas’s brutal October 7, 2023 attack on Israel, which left nearly 1,200 people – most of them civilians – dead and 251 hostages taken. Since then, Israel’s military campaign has devastated Gaza. The Hamas-run Health Ministry reports over 50,000 Palestinians killed – though the numbers do not distinguish between fighters and civilians. Meanwhile, most of Gaza’s 2.1 million people have been displaced, many more than once, and around 70% of buildings have been damaged or destroyed. Basic services like healthcare, clean water, and fuel are collapsing.
Is the EU indirectly funding Hamas?
It’s a question some critics are asking – and for good reason. Hamas, designated a terrorist organisation by the EU, UK, US, and others, has ruled Gaza since 2007 after forcibly ousting the Palestinian Authority. Although the EU insists it doesn’t fund Hamas, the group controls much of the infrastructure, including the Health Ministry and public hospitals. While money is channelled through the PA and UNRWA – which operate in Gaza – the reality is that Hamas controls the ground, making it difficult to ensure aid isn’t diverted, taxed, or co-opted.
Brussels says it uses strict monitoring and audits, often via international partners. But in practice, ensuring aid remains entirely out of Hamas’s reach is nearly impossible while they remain in control.
‘We’re hostages too’: Gaza turns on Hamas
Anger inside Gaza is also boiling over. On March 25 and 26, hundreds of Palestinians dared to march through the streets of Beit Lahia in a rare anti-Hamas protest – the largest since the war began. Chanting “Out, out, out – Hamas out!”, demonstrators accused the group of leading Gaza into ruin. “We refuse to die for anyone’s agenda,” said Mohammed Diab, whose brother was killed in an airstrike.
Hamas enforcers quickly moved in – masked and armed – violently dispersing the crowd. Video footage of the crackdown spread fast on social media, fuelling public outrage.
While Hamas dismissed the protests as driven by “suspicious political agendas,” open dissent is growing, both on the streets and online. As the humanitarian crisis deepens and bombs keep falling, the big question now is: can EU cash really build peace – or is it being buried beneath the rubble?
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