Madrid. Twelve countries, including the UK, France, Japan, Saudi Arabia, and Spain, announced a new coalition to financially support the Palestinian Authority . This support comes at a time when the Palestinian Authority is facing funding shortages due to Israel’s withholding of tax revenues.
The Spanish Foreign Ministry in its statement, as reported by AFP , Saturday 27/9/2025), called the new coalition “Emergency Coalition for the Financial Sustainability of the Palestinian Authority”.
“Formed in response to the urgent and unprecedented financial crisis (facing the Palestinian Authority),” the Spanish Foreign Ministry said, explaining the reasons for the coalition’s formation.
The coalition, according to the Spanish Foreign Ministry, aims to stabilize the Ramallah-based agency’s finances, maintain its ability to govern, provide essential services and maintain security.
“All of this is essential for regional stability and to safeguard the two-state solution,” the Spanish Foreign Ministry said in a statement.
The statement also cited past “significant financial contributions” and a pledge of “continued support” from the coalition.
The 12-nation coalition consists of the United Kingdom, France, Japan, Saudi Arabia, Spain, Belgium, Denmark, Iceland, Ireland, Norway, Slovenia and Switzerland.
The office of Palestinian Prime Minister (PM) Mohammad Mustafa said that donors pledged at least US$ 170 million (Rp 2.8 trillion) to finance the Palestinian Authority.
Saudi Arabia, according to a statement by Foreign Minister Prince Faisal bin Farhan, will provide funds amounting to US$ 90 million (Rp. 1.5 trillion).
Recognizing the inadequacy of short-term assistance, according to a statement from the Spanish Foreign Ministry, the coalition countries will work with financial institutions and international partners “to mobilize resources, support governance and ongoing economic reforms, and ensure full transparency and accountability.”
Under the 1994 Paris Protocol, Israel collects taxes on behalf of the Palestinian Authority.
After the Gaza war broke out in October 2023, Tel Aviv withheld tax revenues from the Palestinian Authority, even after the PA stated that basic services such as health and education were deteriorating and poverty was soaring.
Israel says some of the withheld funds are meant to repay costs such as electricity it sells to Palestinians.
But Israeli Finance Minister Bezalel Smotrich halted all tax payments to the Palestinian Authority four months ago. He vowed to seek the collapse of the Palestinian government through “economic strangulation” to prevent the establishment of a Palestinian state.
The announcement of the financial support comes days after traditional US allies, such as France and the UK, officially recognized the state of Palestine at the United Nations (UN).
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