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Document 52011SC0644
JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: occupied Palestinian territory JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: occupied Palestinian territory
JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: occupied Palestinian territory JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: occupied Palestinian territory
JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: occupied Palestinian territory JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: occupied Palestinian territory
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JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: occupied Palestinian territory JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: occupied Palestinian territory /* SEC/2011/0644 final */
JOINT STAFF WORKING PAPER Implementation of the European
Neighbourhood Policy in 2010
Country Report: occupied Palestinian territory
1.
Overall assessment
The Palestinian Authority (PA) and the
European Community first established contractual relations in 1997 when the EC
and the Palestine Liberation Organisation (PLO), on behalf of the PA, concluded
an Interim Association Agreement on trade and cooperation. The trade part of
the agreement cannot be fully implemented due to obstacles raised by Israel,
which considers it incompatible with the economic provisions of the Oslo
Agreements (the Paris Protocol). On the basis of the agreement, the EU-PA European
Neighbourhood Policy Action Plan (ENP AP) was approved in May 2005 for a period
of three to five years. This document reports on the overall
progress made on the implementation of the EU-PA ENP AP between 1 January and
31 December 2010, although developments outside this period may be considered where
appropriate. For further information on regional and multilateral sector
processes, please refer to the sectoral report. In addition to a number of high-level
visits to both Brussels and the occupied Palestinian territory (oPt), four
subcommittees and one joint committee were held successfully in the course of
2010. These meetings demonstrated the PA’s increased institutional and
coordination capacity. Work has also started on a new Action Plan, which is
expected to be concluded in 2011. Throughout the reporting period, the EU
continued to support the PA with a view to contributing to the implementation
of the two-state solution. The PA also submitted a formal request to
increase the current number of four sub-committees. This increase is in line
with existing practice in the other ENP partner countries and would demonstrate
its increased institutional capacity. The main priorities of the new Action
Plan are consistent with the PA’s statebuilding plan and the new Palestinian
National Plan (PNP 2011–2013). The reformist agenda of the government is
producing good results. The PA has made steadfast progress in building its
capacity to run the future State of Palestine. This was acknowledged in the
World Bank’s report for the Ad Hoc Liaison Committee (AHLC) meeting in
September 2010, which also highlights the main issues ahead of summer 2011,
when the state building plan implementation should be completed. Reforms were
limited to institutions in the West Bank. Progress in many areas (governance, public
finance management) was achieved in a context of occupation, where Israeli
incursions into areas formally under the control of the PA continued. There has
also been some progress on the rule of law. However, concerns about human
rights violations, in particular by the security forces, have not declined and
further efforts are needed to strengthen the judiciary. The late cancellation
of the local elections in the West Bank in July 2010 casts some doubt on the
capacity of the Palestinian political forces to compete democratically. The
economic and social situation in Gaza remains grim due to the blockade. The EU
has proposed a comprehensive package to upgrade the Kerem Shalom crossing, and
intends to further contribute to the eventual opening of all Gaza crossings for
aid, trade and persons. The economy of the oPt continued to grow in
2010 by 9,3 %. In this period, the Palestinian Authority, through fiscal
performance broadly in line with the 2010 budget, reduced its fiscal deficit.
There was also progress in the implementation of the structural reforms set out
in the Palestinian Reform and Development Plan, and reflected in the AP, in
particular on improving financial accountability and on sound management of
public finances. Also, the PA made some progress in reducing dependency on
international aid and supporting private sector activity. Further actions are
planned for the near future. Despite several reconciliation efforts, no
progress can be reported towards bridging the internal split between the
governance structure in the West Bank under President Mahmoud Abbas and the Hamas-led
de facto authority in the Gaza Strip. The latter imposes a strict military
regime and reports confirm a steady deterioration of humanitarian indicators in
the Gaza Strip. The achievements of the state-building
agenda of Prime Minister Salam Fayyad’s government need to move ahead in
parallel with progress in the political process. The latter looks increasingly
difficult especially in view of renewed settlement construction in the West
Bank and recent developments in East Jerusalem.
2.
Political dialogue and reform
Development of enhanced political
dialogue and cooperation In September Middle East Peace Process
(MEPP) negotiations between Israelis and Palestinians were launched,
with support of the US, the EU and the Quartet, following a four-month period of
proximity talks. Talks reached an impasse shortly after the decision by the
Israeli government to end the settlement moratorium on 27 September 2010. The implementation of the Palestinian
Reform and Development Plan (PRDP) progressed in 2010. Efforts made in setting
up a national monitoring and evaluation mechanism have borne initial results.
In July 2010, the ministry of planning provided the first monitoring report on the
PRDP, which used qualitative data in the analysis of progress achieved under
the Plan. The newly-established Anti-Corruption Commission has not yet become
visibly operational. The PA aims to continue with structural
reforms to increase efficiency in the public sector, reduce dependency on
international aid, and support private sector activity. In this respect, a
number of important reforms are planned, including streamlining social
assistance, privatising electricity distribution,
enhancing the legal and regulatory framework for businesses, improving the
sustainability of the public pension system, and implementing civil service
reform. Democracy and the rule of law Despite the long-standing insistence of the
international community on the elaboration of a system of civilian oversight
over all security services, there is still little evidence of greater
integration of security services under the umbrella of the ministry of interior.
The EU Police Mission in the occupied
Palestinian territory (EUPOL COPPS), continued to provide
training, including training on human rights, to help build a professional
civil police. The EU is investing substantial resources in reinforcing the rule
of law through support to the main actors in the justice sector as well as to
the civil police. In June 2010, the government adopted the
Justice and Rule of Law National Sector Strategy 2011–2013, which provides a
basis for the continuous strengthening of the three justice sector
institutions: the ministry of justice (MoJ), the High Judicial Council (HJC)
and the Attorney General’s Office . Under the auspices of the Office of the
President, these institutions worked with the Palestinian Bar Association and a
representative of the military court system to produce a draft joint memorandum
of understanding which clarifies their respective mandates. The MoJ has been
especially active in drafting and reforming legislation. The ongoing and
significant reform of the Criminal Code involves all relevant institutions. The
MoJ also set up a Human Rights Unit in the ministry. The PA continues to be ruled under the
emergency powers conferred on the government by President Abbas. Legislation is
adopted by Presidential decree without passing through the Palestinian
Legislative Council (PLC). Limited democratic oversight over the PA is carried
out by civil society organisations and by informal sessions of remaining PLC
members in Ramallah. The Hamas PLC members in the Gaza Strip claim legitimate
representation and hold regular sessions in which laws are being adopted,
further widening the political and institutional divide between West Bank and
the Gaza Strip. The decision to postpone local elections in
July 2010 met only limited political resistance from the small PLO faction and
from civil society organisations. Nevertheless four electoral lists, with the
assistance of three human rights NGOs, challenged the Cabinet’s decision in
court. In December, the HJC ruled that the Cabinet’s decision was illegal but
did not provide clear guidance on how and when to organise new elections. The
EU continued with financial support for the development of the Central
Elections Commission and launched a new capacity-building programme for the PLC
Secretariat, to prepare this fragile institution for an effective resumption of
parliamentary business. Human rights and fundamental freedoms The situation of human rights and fundamental
freedoms continued to suffer setbacks. The Independent Commission for Human Rights (ICHR) received
numerous complaints related to violations to the right to proper legal process
and just procedures in the West Bank and in Gaza. Most of the complaints
received refer to actions by the security services. Palestinian human rights
organisations report little progress regarding arbitrary detention. The ongoing
tensions between the two major political factions have resulted in a continued
trend of arrests on political grounds. In total, 655 complaints were documented
by the ICHR over political detention in the West Bank and 60 in the Gaza Strip.
Human rights organisations continue to
record steadily complaints of human rights abuses by the security services in
the whole of the oPt, including the West Bank. After the marked decline in
November 2009, complaints about torture and ill-treatment in detention (mainly
police interrogations and intelligence services) have risen again. Although the
PA claims as an achievement the fact of ‘stopping torture in detention centres
and taking punitive measures against violators’, there is no documented
evidence of the punishment of violators in the absence of sufficient
transparency in the military court system and of disciplinary mechanisms in the
security services. The oPt continues to benefit from the European Initiative
for Democracy and Human Rights support. The United Nations
Office of the Coordinator for Humanitarian Affairs (OCHA) report on protection
of civilians indicates that since the beginning of 2010, Israeli forces have injured 1145 Palestinians in the
West Bank during demonstrations or clashes, a 45 % increase compared to
the equivalent period in 2009. Israeli forces conducted a weekly average of 90
search and arrest operations in the West Bank (including East Jerusalem) in
2010. Such operations also often resulted in damage to property. In 2010, 71 Palestinians (including 24 civilians) were
killed and 283 (including 246 civilians) were injured in the context of
Palestinian-Israeli conflict in the Gaza Strip. The majority of casualties
occurred near the fence dividing Israel and the Gaza Strip. Israeli
restrictions on access to areas up to 1500 metres from the fence continue. 17%
of the Gaza Strip’s territory is within 1500 metres of the fence. In 2010, 91
Palestinian workers have been injured in incidents related to restrictions on
access to land near the fence. Children have remained
significant victims of the conflict. In the first half of 2010, four Palestinian
children lost their lives and 141 were injured in incidents directly related to
the conflict; two were killed as a result of internal violence. In addition, one
child was killed and two were injured as a result of handling of explosives. At the end of December 2010, 6252 Palestinians were being detained in Israel.
This number had slightly decreased throughout 2010 from 6831 in January 2009. With regard to
the practice of administrative detention, the number of Palestinians detainees
(those held without charge or trial) also decreased compared to the previous
reporting period. At the end of December 2010, 205 Palestinians were
being held in administrative detention in Israel, compared with 278 in December
2009. Limitations on the freedom to demonstrate
are still enforced. In 2010 Israel renewed Order 101, which severely restricts
the right of assembly of persons protesting in the West Bank. At the end of June 2010, there were 31 Palestinian human
rights defenders from the West Bank villages of Ni’lin, Bil’in, Budrus, Nabi
Saleh, Beit Ummar and Al-Ma’sara held in Israeli custody. The Office of
the European Union Representative, together with EU member states, followed up
and monitored the military court cases against prominent Palestinian human rights
defenders who had peacefully protested against the separation barrier, e.g. Abdallah
Abu Rahma - the head of the Bil’in Popular Committee against the Wall and
Settlements. The EU issued a statement in August 2010 expressing concerns over his
conviction, as by the EU he is considered as a Human Rights Defender committed
to non-violent protests against the route of the Israeli separation barrier
through his West Bank village of Bil’in.’ The EU reiterated that it considered
the route of the Israeli separation barrier, where it is built on Palestinian
land, to be illegal. No death
sentences were issued in the West Bank during the reporting period. Death
penalty sentences have continued to be issued in the Gaza Strip. In total, 17
death sentences were issued by the de-facto Gaza authorities for murder and
treason and three executions were carried out. Demolitions continued
in the West Bank, including East Jerusalem, reaching a total of 431 Palestinian
structures demolished in 2010. Most of the demolitions took place in the Jordan
Valley while 78 structures were demolished in East Jerusalem. The EU has
expressed its deep concern about this and has urged the Israeli authorities to
prevent the demolition of Palestinian homes and the issuing of eviction orders
in East Jerusalem and the rest of the West Bank. The EU called on the Israeli
authorities to suspend these practices, considering them an obstacle to peace,
contrary to the Israeli Roadmap obligations and to international law. Settler violence against Palestinians and their property continued between July and
October 2010, including vandalism against a mosque in Beit Faijjar village,
Bethlehem, on 4 October and against a girls’ secondary school in As Sawiya
village, Nablus, on 27 October. The ongoing impunity continues to favour
settlers. In 2010, one child was killed and 133 Palestinians were injured in attacks
by Israeli settlers. In addition, over 3700 olive trees were vandalised during
the olive harvest. On the other hand, four Israeli settlers were killed. The EU has reminded Israel of its
obligations according to international law and international humanitarian law
vis-à-vis the Palestinian population in the occupied Palestinian territory. Respect for freedom
of religion has not improved and is hampered by access restrictions imposed
by the Israeli authorities. The Israeli army imposed a general closure of the
West Bank during Easter. As a result, many Palestinians of Christian faith
wishing to participate in the Easter ceremony at the Church of the Holy
Sepulchre were not able to do so. Access to Haram-al-Sharif (El Aqsa Mosque)/Temple
Mount was on many occasions closed or limited to men above the age of 50. Access and movement in
the West Bank has generally improved, with the smallest number of obstacles
since 2005. The closure of the Gaza Strip continued. Financial accountability and sound management
of public finances In 2010, the ministry
of finance continued to modernise its Financial Management Information System
and to adapt its financial regulations to ongoing treasury reforms, including the
introduction of a commitment control system. In the first
half of 2010, the ministry produced a draft Public Financial Management
Strategy for 2011–13 as part of the Palestinian National Development Plan. It
also continued to improve the transparency of public finances by providing
monthly website information on PA public debt from June 2010. In August, the
government approved an action plan for the reform of the public pension systems
as a measure to ensure the PA’s long-term financial sustainability. In the area of internal
audit, with EU assistance the ministry of finance initiated the first phase
of decentralisation while continuing to conduct checks and risk assessments
under the supervision of its High Level Audit Committee. With regard to external audit, the
State Audit and Administrative Control Bureau (SAACB) finalised its 2008
financial statement in September 2010, while its 2009 statement is due to be
sent to the President, Cabinet and Legislative Council Secretariat in early
2011. Work also continued on preparing for the modernisation of the Audit law. On corruption,
the 2005 law on illegal gains was amended in June 2010 leading to the
establishment of a new anti-corruption commission. Ongoing progress on internal
audit reforms, the work of the Audit Committee and the enhanced capacity of the
SAACB bode well for fraud prevention.
3.
Economic and social reform
Macroeconomic framework and
functioning of the market economy In 2010, the
GDP of the oPt rose by 9.3 % compared to 7.4 % in 2009. Growth was
due to significant amounts of international donor assistance, to further
relaxation of restrictions on movement of goods and access to people in the
West Bank and to the lifting of certain import controls in the Gaza Strip.
Public services, construction, agriculture and external trade all expanded,
while manufacturing remained subdued (see section on trade). The economy of
Gaza grew rapidly at the start of the year driven by inflows of humanitarian
aid, as well as goods entering through tunnels at the Egyptian border. A large
amount of donor aid continued to be channelled into small scale infrastructure
projects, including the construction and rehabilitation of roads, water
networks, sewage systems, schools and clinics, and residential housing.
Disbursements from the EU-financed Gaza Private Sector Recovery Programme,
implemented in co-operation with the PA (EUR 22 million committed in 2009)
began in 2010. The aim of this programme is to provide support to re-launching
legitimate private sector businesses which had been destroyed or damaged by
"Operation Cast Lead". These actions are of short impact on the
population in Gaza. Long term interventions that are currently hampered by
access restriction to Gaza are urgently needed particularly in the water sector
to avoid a disaster to happen in the near future. While these
factors helped boost private sector activity, the economies of both the West
Bank and Gaza remain severely constrained. Real GDP is more than 10 %
below the level of 1999 in the West Bank and at least 40 % below that
level in Gaza. The revival in economic activity has therefore come from a low
base and is still held back by current restrictions. For example, in the West
Bank, agriculture is hindered by sanctions on products, such as fertilisers,
considered to pose a threat to security, and access to land. Consequently,
while agricultural output has risen, it still only accounts for around 5.5 %
of GDP, compared to 13 % in 1994. Inflation rose slightly in 2010 to 3.7%
compared to 2.8% in 2009 due to sharp rises in food prices toward the end of
2010 and despite tighter monetary policy in Israel and
the relaxation of some import restrictions in the Gaza Strip. FAO has estimated
that 96% of staple food items are imported, in addition to other food
commodities used for production; hence the economy is highly exposed to shifts
in international food prices, which have returned to the levels of 2008. In the
West Bank, unemployment fell to 15 % of the total labour force while in
the Gaza Strip it remains at around 40 %. Fiscal performance was broadly
in line with the 2010 budget. The recurrent fiscal deficit narrowed to 16 %
of GDP in 2010 from 26 % in 2009. This was the result of continued progress
by the Palestinian Authority on the PRDP for 2008–10, which aims at increasing
revenue, reducing expenditure and restoring fiscal sustainability. The improved
tax collection has partly supported the increase of the gross revenue. Current
expenditure, including the public sector wage bill and net lending, fell over
the same period. However, due to lower than expected international aid, the PA
was obliged to borrow from domestic banks and accumulate arrears on existing
loans. The PA plans to progressively consolidate public finances in order to
reduce reliance on international aid and encourage private sector growth. At
the same time, the PA aims to make public expenditure more effective by
shifting resources away from wages and subsidies and toward investment. A comprehensive public pension reform action plan
for 2010–12 was adopted in July 2010. Employment and social policy The unemployment rate decreased from 25 % in
2009 to 24 % in 2010 (20 % in the West Bank and 40.5 % in the
Gaza Strip) — note that International Labour
Organisation (ILO) standard unemployment figures do
not take into account workers discouraged from seeking jobs. The labour force
participation rate remained very low and fell from 41.6 % in the third quarter
of 2009 to 40.5 % in the fourth quarter of 2010. The PA continued
to work with the ILO on an employment programme and on promoting the
inclusion of women in the labour market. The ILO also supported specific job
creation and skills development programmes in Gaza. As regards social
dialogue, in February 2010 the Tripartite Labour Policies Committee
launched a declaration outlining its vision, plan of action and institutional
framework. The declaration focuses on improving industrial relations and
promoting effective and transparent governance of the labour market through
social dialogue. The planned measures include revision of labour agreements in
line with Arab and international standards, enhancement of the labour
administration and inspection and reform of labour legislation. The standard of
living in the oPt is exceptionally low in comparison to other partner
countries, with an overall poverty rate of 55 %; an estimated 80 % of
people living below the poverty line in the Gaza Strip. To increase social
protection and advance the fight against poverty, the ministry of social
affairs finalised its first ‘Social Protection Sector Strategy’. The ministry
is now developing a business strategy, on the basis of which an Action Plan
2011–2013 will be drawn up. In June 2010, the PA launched the Cash
Transfer Programme (CTP), as part of the Palestinian National Programme for
Social Protection. The CTP targets families below the extreme poverty line. The
CTP is now well established in the West Bank and in November 2010 the Gaza
Strip announced its wish to be covered by it. The Gaza Strip beneficiaries are
expected to be fully included in the new system in the first half of 2011. The EU, apart from
providing the majority of the funds for social security payments, has also
actively supported the reform of the social security system in co-operation
with the ministry. From July to
December 2010, the EU contributed EUR 16 million to two rounds of the
Vulnerable Palestinian Families programme payments as part of the CTP. An
average of over 50 000 extremely poor households from the West Bank and
the Gaza Strip benefited from the CTP. In August 2010,
the Council of Ministers approved an action plan for the reform of the public pension
system. The plan includes the consolidation of the pensions’ administration
of all four schemes within the Pensions Authority, the elimination of early
retirement, and a gradual increase in the retirement age.
4.
Trade-related issues, market and regulatory
reform
After two years of contraction, bilateral
trade between the EU and the oPt increased during the reporting period: exports
from the oPt to the EU increased by 43.7 % while EU exports to the oPt
increased by 56.8 %. The oPt trade with the EU and other partners in the
region remains very limited. The ninth Union for the Mediterranean Trade
Ministerial Meeting, which took place in Brussels in November 2010, endorsed a
package of measures to facilitate trade in Palestinian products with other
Euro-Mediterranean partners in line with the EUROMED Trade Roadmap for 2010 and
beyond. In December 2010, the EU and the PA initialled a draft agreement on
further liberalisation of trade in agricultural products, processed
agricultural and fish and fishery products. Further market opening on the EU
side is expected to support the development of the economy of the West Bank and
the Gaza Strip. During the reporting period, the ministry
of agriculture worked on the implementation of the Agricultural Sector
Strategy and on the formulation of the relevant Action Plan aiming, among other
things, at setting up sustainable agriculture, capable of achieving both food
security and competitiveness in the local and foreign markets. Access and movement in
the West Bank generally improved. The restrictions on
trade in goods and in access between urban areas were eased in the West Bank
(but not with East Jerusalem). This helped support internal trade. Over 10 %
of obstacles to movement of goods and persons, such as check points, were
removed, leaving an estimated 500 obstacles in place in the West Bank. Despite
the easing of the Gaza Strip blockade in June 2010, imports of raw materials
and capital goods continue to be heavily restricted and the ban on exports
continues to depress the economy. The PA customs, with EU assistance,
completed the implementation of the third phase of the automated system for customs
data ‘ASYCUDA World’. As a result, the latest version
of the system was rolled out, new customs procedures (including a direct trader
input mechanism) were launched, and customs staff, employees of line ministries
and users from the private sector, were trained. The ‘Al Siyadeh’ programme,
which aims at modernising the administrations responsible for revenue
collection and border management, is under implementation. The PA set up a
customs prosecution department and worked on the establishment of customs
courts, with a view to better enforcing customs revenue collection. As
far as legislation is concerned, in spite of several attempts with the help of
donor states, there is still no approved Palestinian customs code. All
activities in the area of customs, including actions to obtain WCO membership,
are undertaken by the PA as part of its state-building process. Regarding the strengthening of cooperation
to combat irregularities and fraud in customs, the PA participated
in the ‘SIROCCO’ joint operation carried out in June 2010. SIROCCO is a joint
customs operation, coordinated by the European Commission Anti-Fraud Office
(OLAF) and carried out by the customs administration of the EU and 11 partner countries
from the southern rim of the Mediterranean[1]. No progress can be reported on the
unification of tax administrations of the West Bank and the Gaza strip
due to the political situation. In December 2010, the IMF recommended the
elaboration of a medium-term strategy with a view to laying the foundations of a
modern revenue administration. Increased enforcement efforts, combined with
economic growth, led to improved performance in terms
of domestic tax revenue collection. Concerning free
movement of goods and technical regulations, there is no progress to
report. The
PA and the EU stepped up dialogue on sanitary and
phyto-sanitary (SPS) issues. A TAIEX SPS assessment
mission visited the oPt to prepare a gap analysis on legislation and
institutional capacity. The PA is upgrading its SPS legislation and expressed
interest in gradual approximation with EU standards with a view to developing a
‘farm to fork’ approach. In 2010, the PA adopted a law on animal health. Improvements in the areas of starting a business
and enforcing contracts contributed to a better business climate. The
Company Law and the Consumer Protection Law are still awaiting adoption, and
there is still no legal regime for competition. No progress is to be reported in the areas
of accounting and auditing. In the field of financial services,
the banking sector has been largely unaffected by the global economic crisis
due to limited exposure to global financial markets and conservative lending
practices. However, the sector has built up substantial credit exposure to the
PA and its employees. This makes it particularly sensitive to public finances.
The banking sector also continued to face an ongoing problem of excess
liquidity as Israeli banks do not accept cash deposits from banks in the West
Bank. In 2010, the Palestinian Monetary Authority (PMA) continued to implement
Basel II standards, including guidelines on the disclosure of financial
information and regulations governing mergers. Progress was recorded in the enforcement of
the ‘fair lending regulations’ and in the implementation of the new payment
system. In August 2010, the PMA adopted regulations on mergers and acquisitions
procedures. The PMA credit scoring system became fully operational in July
2010, as part of the online credit registry, and the system contributed to the
growth recorded in private sector deposits. The president signed the new
banking law in November 2010. Other key areas The PA drafted a revised law on public
procurement that will unify procurement procedures in PA ministries and
agencies. It will replace all the previous laws and acts governing PA
procurement on its entry into force, planned for 2011. The Palestinian Central Bureau of Statistics
(PCBS) completed phase one of its ‘Metadata System’ and a special website was
launched to serve that purpose. A special team was formed to revise,
further develop, document, and disseminate metadata. So far, the PCBS has
documented more than 20 surveys on the new system, which uses the Accelerated
Data Programme. The first ever agriculture census was implemented in the oPt,
partly funded by the EU. The PCBS continued to benefit from EU assistance
including through the recently launched MEDSTAT III programme. With a view to ensuring an appropriate
legal framework for a modern statistics system based on impartiality,
reliability, transparency and confidentiality of data, the PCBS carried out a
Special Data Dissemination Standard (SDDS) exercise in order to check its
ability to meet SDDS requirements in terms of periodicity and timeliness. In
September 2010 the PCBS also received the ‘ISO 9001’ certificate for 2008. The PA continued to strengthen public
finance management through several actions, in particular enhancements to
the financial management information system, including the introduction of a commitment control system and a budget preparation module accessible
to all government departments.
On enterprise policy, the PA
continued the implementation of the Euro-Mediterranean Charter for Enterprise
and its participation in industrial cooperation activities. The European
Palestinian Credit Guarantee Fund implemented the largest private sector
recovery programme in the Gaza Strip. The ministry of national economy
presented a new SME strategy during the first meeting of the Private Sector
Development & Trade Sector Working Group in July 2010.
5.
Energy, environment, transport, research and
development
Due to the political situation, transport
operators’ activities remained mostly limited to the national territory.
Nevertheless, the transport sector contributes directly
to 8 % of GDP. In 2010, the ministry of transport introduced a new
regulation on the Higher Traffic Safety Council. The Palestinian Traffic Law
and related regulations were completed. The ministry is involved in the ‘national
spatial plan project’, preparing road and transport master plans, and it is
completing studies to merge the current 90 public transport companies into four
companies and redistribute the bus routes. Active Palestinian participation in
the technical dialogue on transport through EUROMED structures and its
involvement in setting up the future Trans-Mediterranean transport network are important.
The oPt remained heavily dependent on energy
imports from Israel. Energy reforms continued on the basis of the
energy action plan 2009–2011. The Palestinian Energy Authority launched an
Energy Sector Strategy for 2011–2013. In February 2010, on the basis of the
2009 Electricity Law, the PA set up the Electricity Regulatory Council under
the Palestinian Energy and Natural Resources Authority. It drafted implementing
legislation for the electricity law on, for example, tariffs and the promotion
of the use of renewable energy sources. The PA continued to transfer electricity
supply services from municipalities to newly established regional distribution
companies. It began a feasibility study on the construction of a power plant in
the Northern West Bank. It pursued the upgrade and reconstruction of
electricity networks on the West Bank and in Gaza. More than 99 % of
Palestinians now have access to electricity although it remains a challenge to
electrify villages between settlements. The PA pursued the installation of
pre-paid electricity meters in the West Bank and started a pilot project in the
Gaza Strip. The PA continued the implementation of an
energy efficiency programme and remained committed to developing the use of
renewable energy, also in trilateral cooperation with the EU and Israel. In
2010, with EU support, the PA began preparations for the electrification of 50 isolated
West Bank villages through the development of photovoltaic solar projects. The
PA also continued to work on a pilot wind energy project for the Hebron
hospital and finalised a feasibility study on a 10 MW solar plant in Jericho. The EU remains committed to re-activating
trilateral energy cooperation with the Palestinian Authority and Israel, which
is stalled due to the regional conflict. The aim remains establishing a joint
energy office and facilitating the development of projects of common interest,
such as the joint ‘Solar for Peace’ initiative. In the field of
climate change, the Council of Ministers approved the setting-up of a
National Committee on Climate Change. The state of
the environment in the Gaza Strip remains a serious concern. Works on the first phase of the Northern Gaza wastewater treatment
plant were concluded and preparations for the second phase are under way. In
the West Bank, preparations for the construction of waste-water treatment
plants and landfills continued. The EQA plans
to review and update the environmental law and other related bylaws. Draft
bylaws were prepared on waste management, hunting, nature reserves and stone
quarries. Environmental standards are being developed or updated on the use and
disposal of treated sludge, the treatment of industrial wastewater, ambient air
quality and gas emissions from heavy duty vehicles. The EQA developed an
Environment Sector Strategy for 2011–2013 and updated the emergency plan on
nature protection. The Council of Ministers adopted a National Solid Waste
Management Strategy and a Wastewater Strategy for 2011–2013. A major challenge is to revive
administrative implementation capacity. There is a need for coordination
between relevant authorities with regard to the management and the use of fresh
water resources. Representatives
of the PA participated in activities under the Horizon 2020 Initiative and the
EU Water Initiative. Cooperation and information
exchange took place between the European Commission and the PA, including on
water, waste management, de-pollution and management of environmental
information. In the field of civil
protection, representatives of the PA were actively involved in the Euro- Mediterranean
Programme for Prevention, Preparedness and Response to natural and man-made
Disasters, which has reached mid-term implementation. Concerning information society issues, the
Ministry of Telecommunications and Information Technology issued ‘The
Palestinian National Authority Statement of National Telecommunications Policy’
in April 2010. The difficult situation with Israel does not allow the oPt
authorities to manage spectrum — the rights to use frequencies to operate in the
oPT are granted by the Israeli authorities — and available frequencies are apparently
insufficient to cope with market developments (two active operators, with total
penetration reaching 80 %). For the fixed line
market, the Palestine Telecommunications Company (Paltel) still holds a
monopoly. Paltel’s internet and data services are offered via a number of
subsidiary companies. Local loop unbundling has yet to be regulated. Concerning audiovisual issues, the ministry
of information submitted a new draft of the broadcasting law to the Cabinet in
March 2010. This draft addressed concerns expressed about an earlier version of
the law which imposed certain restrictions on media freedom. In
the area of research and technology, participation by Palestinian researchers in Seventh Framework Programme (FP7) up to March 2011 has substantially improved (82
Palestinian applicants, of which 11 are main listed) — mainly in agriculture, the
environment and socio-economic humanities — accessing about EUR 1 million.
6.
People-to-people contacts, education and health
In March 2010, the ministries of education
and higher education adopted the Education Development Strategic Plan as the
new Education Strategy for 2011–13 with renewed focus on equitable access,
quality, planning and management, special needs and education in Jerusalem.
Draft strategies on early childhood and adult education were also
prepared. Education accounts for over 30 % of PA expenditure with plans
for rapid expansion, though investment remains heavily dependent on donor
support. In October 2010, staff and board members of the Commission for the
Development of the Teaching Profession were designated. Adoption of the
national teaching professional standards and teacher licensing can only proceed
when the Commission has been set up. The ministry defined and tested core
standards in pilot classrooms as of September 2010 alongside a draft teacher
code of conduct. In the area of higher education, the EU/World Bank
Tertiary Education project concluded in December 2010 with good results in
terms of programme development and institutional management as well as on
improving competitiveness and developing partnerships with industry. Improving the quality and labour-market
relevance of vocational training and education remains a priority under
the Education Strategy. The ministries of education and higher education and of
labour adopted a revised Technical Education and Vocational Training
strategy in November 2010 to establish a coherent national system based on
technical skills development for employment. The EU undertook to support its
implementation through a three-year sector support programme. It will foster
local development through reinforced partnerships between public training
institutions and the private sector while anticipating labour market training
demand. Both ministries demonstrated strong commitment to the Torino Process
spearheaded by the European Training Foundation in particular on the study on
linking education and business. In this context, the development of
entrepreneurial learning and the development of quality assurance systems were
identified for future work. The Tempus
programme continued to support reform of higher education and greater
cooperation with EU universities with three projects selected under the third
Tempus IV call for proposals. No Palestinian students or scholars benefited
from scholarships under Erasmus Mundus Action 1 in 2010 but student and
academic mobility was enhanced through the expected award of 37 grants for the
academic year 2010–11 under Action 2. Greater effort is required to ensure
Palestinian participation in all actions. For the first time, in 2010 a Jean
Monnet module on European integration and a project for a conference on the
EU and the Middle East were awarded to An-Najah National University. The ministry of
youth and sport published its Cross-Sector National Strategy for
Youth 2011–13 in November incorporating joint policy plans in areas such as
education, health, the environment, culture, sports and recreation. Its
implementation demands continuing multi-stakeholder involvement. Palestinian
young people and youth organisations continued to benefit from the
opportunities offered by the Youth in Action Programme, through youth
exchanges, voluntary service and cooperation activities in non-formal
education. In November 2010, the ministry confirmed Palestinian participation
in Euro-Med Youth IV, officially launching the programme and capacity building
activities in December. In the area of culture, Palestinian
organisations continued active participation in the regional Euromed Heritage
IV. In addition, three Palestinian cultural organisations were selected under
the call for proposals of the 2010 ENP Special Action under the Culture
Programme. In terms of cooperation with civil
society, the European Union’s Partnership for Peace Programme continued
support for projects contributing to conflict resolution and mutual
understanding in areas such as science education, protection of shared cultural
heritage and peace education. However, the political situation continues to
seriously impede project implementation, principally due to obstacles to free
movement and access. In March 2010, the PA adopted a new health
strategy covering 2011–2013. Its priorities include: governance, human
resources, healthy lifestyle, access to quality health services, financing, aid
effectiveness, public-private partnerships and cross-sectoral cooperation. The
EU continued to substantially support the Palestinian health sector. The PA
built or expanded primary health clinics and, in August 2010, opened the
Ramallah medical complex. The political situation in the region (e.g. the split
between the Gaza Strip and the West Bank, the situation in East Jerusalem,
Israeli restrictions on the movement of persons and goods) continues to have a negative
impact on the physical and mental health of Palestinians. The health situation
in Gaza, particularly, is deteriorating. In March 2010, in the context of last
year’s influenza A (H1N1) epidemic, the EU and the PA established communication
channels for the exchange of epidemiological information in the event of a public
health emergency of international concern. The PA pursued participation in the ‘Episouth’ network on communicable diseases for
the EU, Mediterranean and Balkan countries. The EU has increased the annual allocations
it provides to support Palestinian health, education and economic-development
institutions in East Jerusalem.
7.
Financial cooperation — 2010 key facts and
figures
Cooperation framework Due to the continuing
emergency situation in the West Bank and Gaza there is no National Indicative
Programme (NIP) under the European Neighbourhood and Partnership Instrument
(ENPI) covering the period 2011–2013. Funding committed under the bilateral allocation
of the ENPI to the occupied Palestinian territory for 2010 came to EUR 377.9
million. Implementation Most of the assistance is
channelled through the ‘Mécanisme
Palestino-Européen de Gestion de l’Aide Socio-Economique’ (PEGASE) which is
geared to supporting the achievement of key policy objectives as outlined in
the Palestinian Reform and Development Plan (PRDP) covering the years 2007–2010
and the Palestinian National Plan (2011–2013) soon to be adopted. PEGASE
provides significant direct financial support to the PA to pay the salaries and
pensions of essential service providers, both in Gaza and the West Bank, in
particular doctors, nurses and schoolteachers. PEGASE is also intended to help
the PA become the cornerstone of the future Palestinian State by moving away
from the emergency assistance provided under the previous Temporary
Implementation Mechanism and focusing more on institutional capacity-building
and social and economic development. To this end, the EU is investing
substantial resources in reinforcing the rule of law through support to the
main actors in the justice sector and to the civil police. It has also actively
supported the reform of the social security system. The EU also provides
significant funding to the United Nations Relief and Works Agency for Palestine
Refugees in the Near East (UNRWA) responsible for the provision of health,
education and social services to the Palestine refugee population in West Bank
and Gaza, and in the neighbouring countries. UNRWA benefited in 2010 from a
total of EUR 102.7 million from ENPI and other EU instruments. The implementation of the
measures covered by the 2009 and 2010 financial years is under way. Progress is
being made in the provision of infrastructure facilities for various
Palestinian institutions and of technical assistance to PA ministries which
have a vital role to play in state-building, notably the ministry of social affairs,
ministry of finance and ministry of planning and administrative development.
Projects aimed at reinforcing Palestinian schools and hospitals in East
Jerusalem are also being implemented. In addition
to this bilateral allocation, the occupied Palestinian territory continues to
benefit from cooperation activities financed under the ENPI multi-country and
regional programmes, in particular the ‘Partnership for Peace’ initiative for
civil society organisations. Other EU instruments supplement the ENPI assistance
package. The oPT benefited from cooperation activities financed under horizontal instruments such as the European
Instrument for Democracy and Human Rights (EIDHR- oPt continues to benefit
from its country-bases support strategy, with an allocation of EUR 1.2 million) and the Development Cooperation Instrument
(DCI) thematic programmes: Non-State Actors and Local Authorities in
Development (NSA-LA), Investing in People and Food Security. These thematic lines have
the additional advantage of permitting the EU to intervene directly in support
of civil society organizations in the Gaza Strip. The Food Facility provided EUR 39.7 million for the period
January 2009 to June 2011, taking account in particular of the difficult
situation in the Gaza Strip. The occupied Palestinian territory also benefited
from humanitarian assistance provided by the European Commission (EUR 51 million
in 2010, of which EUR 14 million is allocated to UNRWA). Overall the total
allocation for the Palestinian refugees in the oPt and Lebanon in 2010 amounts
to EUR 58 million and the total allocation to UNRWA equals EUR 16.5 million. Donor coordination The EU is the largest
donor to the PA and UNRWA and plays a major role as a reliable, predictable and
punctual provider of support. Under a specific EU lead donor group and with the
support of the European Commission as secretariat and facilitator, 12 EU sector
strategies have been developed in cooperation with the PA in the following
sectors: Security (UK), Justice (COM), Public Finance Management (COM),
Education (France), Health (Italy), Private Sector Development (COM),
Agriculture (Spain), Water and Waste Water (Germany), Electricity (COM),
Jerusalem (COM), Municipal Development and Local Government (Denmark) and Refugees
(COM). This represents significant progress towards the Paris Declaration aid
effectiveness principles, and will soon allow coordinated programming between
the EU, its member states and the PA. [1] SIROCCO focused on deep sea containers loaded in
China or the United Arab Emirates and arriving in countries of the Union for
the Mediterranean. Around 40 million cigarettes, 1243
kg of hand-rolled tobacco, 7038 litres of alcohol and 8 million other
counterfeits were seized during the operation.