The European Commission, the EU’s executive body, has approved a €252.5 million ($274 million) assistance package supporting the Palestinian Authority (PA) and Palestinian refugees.

‘’It is the first part of the EU’s 2016 annual support package in favour of Palestine,’’ a Commission statement said.

€170.5 million will be channelled directly to the Palestinian Authority through the PEGASE mechanism which helps the PA build the institutions of a future independent Palestinian state.

‘’Through these funds the EU will support the Palestinian Authority in delivering health and education services, protecting the poorest families and providing financial assistance to the hospitals in East Jerusalem,’’ the EU said.

The remaining €82 million will be a contribution to the Programme Budget of the United Nations Relief and Works Agency in the Near East (UNRWA), which provides essential services for Palestinian refugees across the region.

A second package of measures in favour of the Palestinians will be announced later in the year.

EU foreign policy chief Federica Mogherini declared : ‘’Through this package, the EU supports the daily lives of Palestinians in the fields of education and health, protecting the poorest families and also providing the Palestinian refugees with access to essential services. These are tangible steps on the ground that can improve the lives of Palestinian people. But these steps are not enough. Palestinian institutions must continue to grow stronger, become more transparent, more accountable and more democratic.’’

She added : ‘’Viable and inclusive institutions, based on respect for the rule of law and human rights, are crucial in view of the establishment of an independent and sovereign Palestinian State.’’

She reiterated that the EU wants to achieve is ‘’the establishment of an independent and sovereign Palestinian State living side by side, in peace and security, with the State of Israel and other neighbours."

EU Commissioner for European Neighbourhood Policy and Enlargement Negotiations, Johannes Hahn, said: "The EU remains firm in its commitment to Palestinians and actively supports a two-state solution.’’