Palestinian factions – including Hamas and President Mahmoud Abbas’ Fatah – have reached a deal on forming an interim government after the Gaza war ends. While the latest attempt at reconciliation between the warring factions may come to nothing – a series of much-trumpeted previous efforts have failed to produce anything concrete – it potentially complicates the picture in the West Bank and Gaza as western donors make new commitments to the Palestinians.
What happened
- After three days of talks hosted in Beijing, 14 Palestinian factions including Fatah and terrorist group Hamas have signed a declaration committing to an interim “national reconciliation government” for the West Bank and Gaza after the war with Israel.
- This is the latest in a series of attempts to broker an agreement between Fatah, which is led by the Palestinian Authority (PA) president, and Hamas since their split following the Islamist terrorist group’s 2007 coup in Gaza. Israel has rejected the “Beijing Declaration” and has been clear, as has the UK, US and other powers that Hamas can have no role in future governance.
- The China-led talks began in April and come on the back of increasing diplomatic and economic interest on the part of the rising superpower in the region. China sponsored last year’s normalisation agreement between rivals Iran and Saudi Arabia. China has consistently called for recognising Palestine as part of a two-state solution.
- The future governance scenarios in Gaza, as well as prospects for a return to direct negotiations between Israel and the Palestinians, hinge on a reformed and revitalised Palestinian Authority with the credibility to both govern and negotiate.
Restoration of funding for UNRWA
Last week, the new Labour government announced it would reinstate funding for the United Nations Relief and Works Agenda (UNRWA) after the UK and other donor states suspended funding earlier this year over accusations that the UN body’s staff were involved in the 7 October atrocities in Israel. In announcing the decision, foreign secretary David Lammy committed £21m to support UNRWA’s flash appeal for Gaza as well as for basic services UNRWA provides to six million Palestinians throughout the region.
Other donor countries, including Germany, France and Japan, also restored funding following the publication of an independent report that investigated UNRWA’s operations. The report by former French foreign minister Catherine Colonna identified a host of governance shortcomings and £1m of the UK’s renewed funding to UNRWA is allocated to support reforms, which include enhancing neutrality, procedural and vetting standards.
Observers have long pointed to the deep-seated, structural challenges associated with UNRWA. As part of a wider programme of supporting a reformed and revitalised PA, LFI last week called on the government to work in the long-term to transition UNRWA’s mandate and resources to a reformed PA.
European commission agrees new framework for PA
The European Commission has signed a “letter of intent” with the PA to its dire fiscal situation while supporting a “substantial and credible” reform agenda for the credibility-strapped authority in the West Bank. Short-term funding amounts to €400m this year, contingent on the implementation of PA reforms. The agreed reform agenda for the PA includes action on combatting corruption, advancing the rule of law and transparency, and reforming social security and education systems, among other areas. The Commission singles out action on the PA’s controversial payment of salaries to terrorist prisoners serving time in Israeli jails, as well as the families of “martyrs” who died committing attacks on Israelis, and the authority’s incitement-laden school curriculum.
The Commission views this agreement as a first step in establishing a long-term “Comprehensive Programme for Palestinian Recovery and Resilience” which aims to be a multi-donor platform to stabilise the PA and structure long-term reform. The European Union is the biggest provider of external assistance to the Palestinians, amounting to almost €1.2bn for 2021-2024 under the European Joint Strategy.
