The Commission is waiting for two audits before paying EU funds for the new Palestinian social aid system.

The European Commission has not paid the EU funds related to the reform of the Palestinian social assistance system and will wait for the completion of two verifications. The institution wants to confirm that the old payments for the families of prisoners and those referred to as "martyrs" have been eliminated and that a parallel mechanism is not functioning.

In short, the Palestinian Authority adopted a decree in February 2025 that abolished the old payment system for the families of prisoners and those referred to as "martyrs." The new system should provide support exclusively based on the social situation, income, and vulnerability of the family, not based on the status or actions of a relative. The Palestinian Authority has commissioned an independent international audit, which began in January 2026 and is in the process of completion. The European Union is separately conducting a comprehensive audit to verify whether there are any other channels or parallel payment systems. The Commission stated that it has made no European payments related to this reform and will wait for both the external audit and its own assessment.

The European Commission has conditioned the payment of funds related to the reform of Palestinian social assistance on verifying how the new system operates. This clarification was made at the press briefing on July 14, after questions about the audit commissioned by the Palestinian Authority.

The old mechanism provided payments to the families of certain Palestinians imprisoned, convicted, or killed in the context of the conflict with Israel. The system was criticized because the amount or eligibility could be associated with the situation of the person in detention or the nature of the acts for which they were convicted.

The Palestinian Authority adopted a decree in February 2025 announcing the abolition of the previous system. According to the Commission, the new mechanism must provide assistance only based on social, economic, and vulnerability criteria.

This means that support should be established based on the family's needs, such as income, the number of people in care, or social situation. It should not be automatically granted because a family member is a prisoner, has been convicted, or has died.

The Palestinian Authority has contracted an independent international audit of the new system. The verification began in January 2026 and is in the process of completion, according to the spokesperson for the Commission.

Palestinian representatives presented the status of the reform and the audit at the donor meeting on July 13. The Commission did not confirm at the briefing that it has already received the final report, stating that it is still being finalized.

The European Union has launched its own verification in parallel. The European audit must analyze the entire system and confirm that the old mechanism does not continue in another form or through other channels.

"No payment of European money has been made in connection with these reforms, as the reforms have not been fully completed. We are waiting for the audit and our own assessment," explained the spokesperson for the Commission.

The Commission did not specify at the briefing the value of the withheld funds or the exact budget program from which the payment would come. The statement refers to the European money conditioned on this reform, not to the entire financial support provided by the European Union to the Palestinian Authority or the Palestinian population.

The two audits have separate roles. The verification commissioned by the Palestinian Authority must evaluate the system it has introduced, while the European Union's audit must provide the Commission with its own basis to decide whether the conditions for payment have been met.

The Commission stated that the reform of the social protection system was an important requirement in the relationship with the Palestinian Authority. Payment will be able to be analyzed after the completion of the international audit and the European assessment.