JERUSALEM, November 4, 2009 (WAFA)- Spain and Sweden have joined forces to help the Palestinian Authority (PA) meet its wages and pensions bill for Civil Servants' and Pensions until the end of the year, thus helping to ensure the continuous delivery of public services to the Palestinian people.

Spain is contributing a total of €25 million and Sweden €4.85 million to the salary and pension payments for almost 80,000 civil servants and pensioners in November and December 2009.

The first disbursement from this latest European contribution, which will reach the bank accounts of 79,916 civil servants and pensioners today, amounts to €14.84 million (over NIS 82 million). A second disbursement will take place in December. 

'The total Spanish contribution of €25 million reflects the support of the Government of Spain to institutional and social stability, in the framework of the preparation necessary for the establishment of an independent Palestinian State ,' said Ambassador Ramón Ansoaín, the Spanish Consul General in Jerusalem .

The Swedish Consul General in Jerusalem , Mr Nils Eliasson, said: 'We hope that the Palestinian economy will be allowed to grow so that the dependence on donors' support will gradually decrease. In the short term, however, support to the PA for reducing its budget deficit is essential.” Adding “without such support, it will be impossible to carry-out the necessary reform and development programs. It is with this in mind that Sweden has provided, in cooperation with the European Commission, through the PEGASE mechanism and its predecessor TIM (Temporary International Mechanism), a total of around €25 million to support the recurrent expenditures of the Palestinian Authority.'

Spain and Sweden's contributions complement an ongoing programme of EU assistance to the Palestinian Authority to help sustain and transform the public sector and boost the economy, channeled through the EU's dedicated PEGASE[1] mechanism. As well as helping the PA to meet a substantial proportion of its running costs, European funds support major reform and development programmes in key ministries, to help prepare the Palestinian Authority for statehood in line with the plan proposed in September 2009 by Prime Minister Salam Fayyad.

The European Union (European Commission and European Member States ) has so far provided more than €293 million in 2009 in support of the Palestinian Authority's budget through PEGASE.