A4-0129/96

Resolution on the Commission Communication to the Council and the European Parliament on future European Union economic assistance to the West Bank and the Gaza Strip (COM(95)0505 - C4-0488/95)

The European Parliament,

- having regard to the Communication from the Commission to the Council and the European Parliament on future European Union economic assistance to the West Bank and the Gaza strip (COM(95)0505, C4-0488/95),

- having regard to its recommendation to the Council of 15 December 1995 on the election of the Council and President of the Palestinian Authority and the role of the Union,

((OJ C 17, 22.1.1996, p. 457.))- having regard to its opinion of 14 December 1995 on the proposal for a Council regulation on financial and technical measures to support the reform of economic and social structures in Mediterranean non-member countries and territories (MEDA Programme) ((OJ C 17, 22.1.1996, p. 184.)),

- having regard to the report of the Committee on Foreign Affairs, Security and Defence Policy and the opinions of the Committee on Budgets, the Committee on External Economic Relations, the Committee on Development and Cooperation and the Committee on Budgetary Control (A4-0129/96),

A. welcoming the Union's support for the Middle East peace process, which, inter alia, has resulted in the holding of the first democratic elections in the Palestinian autonomous territory,

B. convinced that these elections have endowed the Palestinian autonomous territory with a democratic legislative and executive decision-making structure,

C. convinced that the serious economic situation and the poverty of these territories are amongst the factors which could contribute to a strengthening of religious fundamentalism, which could pave the way for terrorism,

D. hoping that the prospects for economic, social and humanitarian development can help to put an end to terrorist movements,

E. whereas a comprehensive assistance strategy which will contribute to a tangible improvement in economic and social conditions for the Palestinian people is the most effective means of broadening popular support for the peace process and to mitigate the existence and appeal of extremist organizations which oppose the peace process,

F. believing economic aid to be an indispensable part of any strategy designed to achieve lasting peace in the region, since a successful peace process can only be ensured if the people affected prosper economically, socially, culturally and in humanitarian terms,

G. whereas outside aid will continue to be needed for the foreseeable future, since less than one third of the population can be breadwinners within the money economy and hence an 'abnormally' high proportion of production must be directed at basic provision, which, in turn, means that there is little surplus for investment,

H. whereas the European Union cannot single-handedly contribute all the necessary resources and create the conditions for synergy between the countries involved and the international and regional organizations active in the Palestinian autonomous territory,

I. having regard to the significant degree of consensus amongst experts that assistance so far has been piecemeal, unintegrated and haphazard, and whereas great efforts must be made to coordinate aid both between the EU and other donors as well as amongst the individual Member States, with a view to ensuring consistency of cooperation and to improve complementarity between operations,

J. recalling the final resolution of the Euro-Mediterranean Conference held in Barcelona on 27/28 November 1995, at which the participants (including Palestine) stressed their desire to establish a comprehensive system of cooperation,

1. Welcomes the Commission's initiative for a comprehensive programme of aid for a democratic Palestinian autonomous territory in which respect for human rights and fundamental freedoms must be guaranteed and the fight against terrorism must be continued;

2. Believes that assistance should aim to contribute to sustainable economic and social development, and contribute to the general objective of developing and consolidating democracy and the rule of law; activities financed must ensure the visibility of Community projects and programmes;

3. Regards as very important the contribution which the EU can make through budget heading B7-705, MEDA for democracy, to the establishment and proper working of democratic institutions which foster the development of a pluralistic and a multi-party Palestinian society;

4. Hopes that these initiatives will permit the full integration of all forces and movements which, whilst differing in their appraisal of the peace process, reject terrorism as an instrument of political struggle;

5. Welcomes the fact that the EU, by providing 45% of the entire donor effort, is the largest donor to Palestinian development, followed by Saudi Arabia (19%) the US (16%) and Japan (8%); believes, however, that other Arab states should be encouraged to increase assistance, which could serve both as a concrete indication of their approval of the peace process and contribute to widening public support for it in the region;

6. Believes that, since the majority of countries which bear most responsibility for development aid are now members of the EU, it is reasonable that the European Union should accept special responsibility for helping the Palestinians now that they have been given an opportunity to determine their own destiny to a greater extent;

7. Believes that the EU should provide assistance which may be required to facilitate the implementation of the future Israeli-Palestinian agreement regarding the question of Israeli settlements and Palestinian refugees;

8. Is of the opinion that the EU's financial assistance to the West Bank and the Gaza Strip should contribute to creating a unified and political entity, but considers that the potential for success will be increased by taking into account that currently the two entities differ economically, socially and politically and that Gaza has a lower level of development than the West Bank;

9. Takes the view that every form of aid given to the autonomous Palestinian territory by the EU and its Member States should be regarded as a contribution towards the establishment of a lasting and stable peace in the Middle East;

10. Believes that exchanges of experience with European journalists and other measures aimed at providing legal and practical safeguards for the freedom of the media in Palestine (such as legislation on the freedom of speech, the appointment of a press ombudsman, etc.) should be encouraged;

11. Believes that EU aid towards the creation of an administration should be stepped up so that the Palestinian autonomous territory can effectively take on new responsibilities, such as healthcare and medical services;

12. Considers it important, in order to enable the Palestinians to administer significant amounts of international aid with greater effectiveness, to provide assistance for the establishment of the requisite technical and financial machinery; this must be organized so as to provide the means for public accountability and transparency - features which should be essential elements of financial assistance;

13. Believes that, with this in view, consideration should be given to the establishment of an ad hoc financial institution, to be set up by the donor countries in agreement with the Palestinian authority,

14. Asks the Commission to make an improved effort in resolving administrative and institutional obstacles to facilitate absorption capacity and the rapid implementation, monitoring and adequate control of the EU assistance programmes for the development of the Occupied Territories;

15. Considers that the lessons to be learned from recent history in this field prompt the conclusion that the Commission should radically overhaul its internal mechanisms for decision-making, management and implementation of expenditure by placing emphasis on rapid decision-making and a single command structure for the application of decisions;

16. Considers that assistance and financing with a view to strengthening the social infrastructure administered by the Palestinian Authority is essential, as their current weaknesses create a serious gap which has allowed for the provision of such services by organizations such as Hamas, which opposes the peace process;

17. Takes the view that the EU should provide support for family planning measures, if the Palestinians so wish;

18. Believes that EU support for genuine popular movements (NGOs) should be increased, provided that this does not benefit Hamas or related organizations;

19. Considers it essential that, when implementing cooperation programmes within the region, the Commission promote the strand of public opinion which favours and supports the peace process and that it is ensured that no assistance is provided to organizations which oppose the peace process;

20. Takes the view that, as the threats to the peace process are considerable, it is important that the rest of the world, including the EU, step up its support for practical measures to aid the development of the Palestinian autonomous territory;

21. Stresses that the two priority objectives of the EU should be to help the Palestinian public and private sectors to create employment as soon as possible by the creation of industrial parks (60% of the active population is out of work in the Gaza Strip) and to set up a legal framework and a modern physical infrastructure in order to further the ability of the economy to function effectively (water, telecommunications, road and rail networks, electricity);

22. Considers that it is important for the democratic countries of the world to emphasize to the Palestinian autonomous territory that abuse of power is never permissible in a democratic society based on the rule of law, however 'abnormal' the situation might be;

23. Takes the view that the EU's economic assistance should first and foremost be used to promote employment in the Palestinian autonomous territory and that this should not be assistance exclusively for the long term but, rather, also short-term help in the light of the Palestinians' high unemployment and precarious economic situation;

24. Believes that the economic protocol between Israel and the PLO signed on 29 April 1994 in Paris, removes the main restrictions and distortions burdening the economy of the Occupied Territories and points out in this regard that the transfer of economic powers to the Palestinian Authority will promote the existence of a platform from which to initiate an autonomously-based development process;

25. Regards it as essential nevertheless that the remaining administrative and structural distortions harming the competitiveness of Palestinian firms in the Occupied Territories be eliminated as soon as possible;

26. Takes the view that EU aid should be directed at sustaining social facilities which function well but which are threatened with closure owing to a lack of resources; believes that the EU should also contribute towards supporting society's most marginalized groups, for example the physically and mentally handicapped;

27. Notes that, although the EU already gives key Palestinian farm products free or preferential access and manufactured products enjoy free access, this has not generated significant trade flows to the EU; therefore considers that the possibility of strengthening and extending existing concessions should be considered and encouragement given to other industrialized countries to do the same;

28. Believes that the EU should work for an extension of trade concessions for agricultural products in respect of which the Palestinians have special requirements, e.g. cut flowers and strawberries;

29. Emphasizes the lack of a trade policy designed to regulate competitive behaviour and the inability to promote industrial development strategies such as export promotion; accordingly the Commission should take steps to provide technical know-how in these areas;

30. Considers that the EU should contribute to the construction of both a port and an airport, since the lack of such structures constitutes an obstacle to the diversification of markets for Palestinian exports and limits the choice of imports;

31. Considers equality to be a fundamental human right; believes, in view of this, that all aid to Palestine must take account of equality; takes the view that NGOs whose work includes issues of equality should be encouraged to step up contact with their counterparts in Palestine;

32. Takes the view that the Palestinian strategy for development must 'be owned by the Palestinian people', and not something which is imposed on the Palestinians by outsiders;

33. Takes the view that budget constraints must not be allowed to prevent the Palestinian authorities from taking social and security-related initiatives;

34. Takes the view that a dogmatic ideology of austerity must not be allowed to prevent increases in staffing levels which are required for social and security-related reasons within the Palestinian public sector;

35. Notes that, with regard to the EU budget, assistance to the West Bank and Gaza is available from various budget lines and considers that the Commission must ensure the synergetic effect of such aid;

36. Believes that the possibility of subsidizing EIB interest rates through a contribution from the Community budget should be considered;

37. Believes that, of the alternative strategies put forward by the Commission as regards trade policy, priority should be given to the following:

(a) bilateral agreements with the EU and other industrialized countries in order to open up their markets to Palestinian goods;

(b) regional cooperation in the field of transport and water and energy supply;

(c) the creation of an enterprise climate for the promotion of private investment;

(d) coverage for insurance (reinsurance) in respect of investment risks;

38. Stresses that, for the future, bilateral relations between the EU and the West Bank/Gaza Strip should be bolstered by:

- support for the territories as fully-fledged participants in the policy for the establishment of a Euro-Mediterranean Partnership;

- formalizing bilateral relations by the conclusion of an interim Agreement with a view - when the necessary international conditions prevail - to the conclusion of a Mediterranean Association Agreement which must respect the 1993 Israeli/Palestinian Oslo Agreement;

39. Invites the Commission to provide financial support for projects to create the necessary transport infrastructure, within the territories and for external links, for contributing to Palestinian autonomy and to the economic development of the territories;

40. Welcomes the establishment of the Palestinian Energy Centre, and believes that encouragement should be given to discussions with the authorities of countries in the neighbouring region with a view to establishing a regional energy centre for the Middle East;

41. Is aware of the strategic importance of the management of the region's water resources, in political and technical terms, and therefore invites the Commission to promote the study and implementation of joint projects in this sector;

42. Believes that the EU ought to be prepared to give assistance in connection with desalination plants, but on condition that they are operated with existing or renewable energy sources and do not give rise to the use of nuclear energy;

43. Believes that the EU ought actively to provide technical assistance for the development of alternative energy sources, not least solar energy, and in this way help to avoid the use of nuclear power;

44. Stresses that it is imperative for the EU and other donors to establish the need to construct new sewage systems as a priority of their technical aid and stresses that cooperation towards integrated management of water resources and development of resources taking into account the promotion of sustainable development should be a major goal of the EU-Mediterranean Partnership;

45. Believes that EU aid to and operations in the Palestinian autonomous territory should always have an environmental aspect, inter alia requiring the Palestinian authorities to take account of environmental factors in their strategies and action plans for the future of the Palestinian autonomous territory;

46. Believes that the EU, its Member States and, in particular, environmental organizations should contribute know-how and experience in order to help the Palestinians to avoid repeating the environmental sins committed by the industrialized countries;

47. Instructs its President to forward this resolution to the Council, the Commission, the President of the Palestinian Authority and the Israeli Government.