BRUSSELS: The European Union backtracked in disarray on Monday on an announcement that aid to Palestinians had been suspended in response to the attack on Israel by Hamas after EU countries complained the bloc’s executive had overstepped the mark.

The confusion began after Oliver Varhelyi, the top official for relations with the EU’s neighbours, said the European Commission was putting all its development aid for Palestinians, worth 691 million euros ($729 million), under review.

In a post on social media site X, Varhelyi — a Hungarian who is European Commissioner for Neighbourhood and Enlargement — also said all payments were “immediately suspended”.

Varhelyi was nominated for his post by Hungarian Prime Minister Viktor Orban, a staunch ally of Israeli Prime Minister Benjamin Netanyahu.

The announcement prompted consternation among multiple governments, who had warned against cutting off aid to the detriment of Palestinian civilians and questioned whether the Commission had the authority to take such a decision.

The move also came as a surprise as officials had said earlier in the day that aid to Palestinians would be discussed at an emergency meeting of EU foreign ministers on Tuesday.

Spain, Portugal, Luxembourg and Ireland publicly voiced alarm while other countries did so behind the scenes, diplomats said.

“Our understanding is that there is no legal basis for a unilateral decision of this kind by an individual Commissioner and we do not support a suspension of aid,” a spokesperson for Ireland’s foreign ministry said.

More than five hours after Varhelyi’s social media post, the Commission issued a statement confirming it had started an urgent aid review but also declaring that “as there were no payments foreseen, there will be no suspension of payments”.

EU foreign policy chief Josep Borrell then sowed further confusion when he said the EU would not suspend “due payments” - right after the Commission had said no payments were foreseen.

The Commission ®declined to explain the discrepancy. But it clarified that humanitarian aid - which is separate to funds for development - would continue.

Published in Dawn, October 10th, 2023