Brussels, 25 January 2008
The European Commission will launch next February 1st the PEGASE mechanism, a new instrument to channel EU and international assistance as a contribution to the building of the Palestinian State and as a follow-up to the current Temporary International Mechanism (TIM). PEGASE will run for the next three years. Based on the Reform and Development Plan of the Palestinian Authority, it will channel assistance to four key areas: governance, social development, economic and private sector development, and public infrastructure.
Benita Ferrero-Waldner, Commissioner for External Relations and European Neighbourhood Policy, invites all Member States to use this new mechanism to channel their contributions. Commissioner Ferrero-Waldner said: "The European Union is strongly committed to support the Palestinian Authority's reform and development priorities aiming at boosting the economy and improving the life of all Palestinians. PEGASE will provide greater stability and predictability to our action as the largest donors to the Palestinians and emphasize the ownership of the Palestinian Authority in the process of reforms and development".
PEGASE will channel support for the three-year Palestinian Reform and Development Plan (PRDP) which had been presented by Palestinian Prime Minister Salam Fayyad at the Paris Donor Conference last 17 December. It will be implemented in full partnership with the Palestinian authorities. PEGASE which covers EU assistance to West Bank, Gaza and East Jerusalem will be coordinated locally with EU Member States and other international partners.
The PEGASE mechanism builds upon the success of the Temporary International Mechanism (TIM), which attracted contributions from 19 international donors, of which 15 EU Member States, for a total of approximately €190 million. PEGASE will also be open to international donors. However, while the TIM was an emergency assistance mechanism renewed every three-month, PEGASE will be an instrument covering a wider range of activities and lasting three years, the same period as the Palestinian Reform and Development Plan (PRDP).
PEGASE will support a broad array of activities in the four priority sectors of the PRDP:
- Governance: fiscal reform, rule of law, justice, accountability, security;
- Social Development: social protection, health, education (including vocational education and training), employment schemes and the provision of basic supplies like fuel;
- Economic and Private Sector Development: trade facilitation, small and medium enterprises guarantee and financing, and business centres;
- Public Infrastructure Development in areas such as water, environment or energy.
 Mécanisme Palestino-Européen de Gestion de l'Aide Socio-Economique