EU Neighborhood Commissioner Olivér Várhelyi. Photo: Reuters/Pontus Lundahl

Uncertainty overshadowed the EU’s aid policy towards the Palestinians on Monday, with one official announcing that the bloc’s development support funding had been suspended, while another stated shortly after that aid would “continue as long as needed.”

EU Neighborhood Commissioner Olivér Várhelyi announced all payments had been “immediately suspended” while the EU’s €691 million development support for Palestinians was “under review.”

However, EU Crisis Management Commissioner Janez Lenarčič later stated that humanitarian aid to Palestinians will “continue as long as needed,” casting uncertainty over whether EU funds are being withheld.

At least two EU member states protested Várhelyi’s announcement. “We are the largest donor to Gaza. This help is important for young people. This is not money for Hamas. It is for the people of Gaza,” Luxembourg’s acting Foreign Minister Jean Asselborn told the AFP news agency.

Yolanda Diaz, Spain’s acting Deputy Prime Minister, went further, slamming the decision as “outrageous.”

“This is…a true betrayal by Europe of its own founding principles. The European Commission must rectify and Europe lead international action for peace, not punish an entire people,” Diaz declared on X/Twitter.

Peter Stano, the European Commission’s spokesperson for foreign affairs and security policy, did little clarify the EU’s precise position in a statement on Monday.

“In light of this indiscriminate attack waged by Hamas, Israel has the right to defend itself, its territory, and its people in line with international law,” Stano said.

But, he added, “It is also important, on the other hand, to see that Palestinian people are not suffering because of this.”

In a separate development, Austria announced it was suspending aid to the Palestinians.

“The extent of the terror is so horrific that we cannot go back to business as usual. We will therefore put all payments from Austrian development cooperation on ice for the time being,” Austrian Foreign Minister Alexander Schallenberg confirmed on Monday.

Similar moves are being considered by Norway and Germany. The German government will hold a special hearing on Tuesday, reviewing its funding to the Palestinians including NGOs.

“We have already paid strict attention to ensuring that our support for the people in the Palestinian territories serves peace and not terrorists,” German Development Minister Svenja Schulze stated on Sunday. “But these attacks on Israel are a terrible turning point. We will therefore examine our entire commitment to the Palestinian territories.”