Cian O'Callaghan (Dublin Bay North, Social Democrats)
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148. To ask the Minister for Foreign Affairs and Trade if he will ensure Ireland plays a leading role in the restoration of the Palestinian banking system; if he will advocate for the immediate end to the block imposed by Israel of banknotes to Palestinian banks; and if he will make a statement on the matter. [60750/25]

Simon Harris (Wicklow, Fine Gael)
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The Government remains committed to supporting the Palestinian Authority, both politically and financially. Financial stability is imperative to the effective functioning of the Palestinian Authority, and addressing the fiscal crisis will be central to its ability to deliver basic public services.

Ireland is actively working with the EU and other partners in the region and beyond to foster an enabling environment for a revitalised Palestinian Authority. I was pleased to attend the first ever EU-Palestine High Level Dialogue in Luxembourg in April. At the meeting, I welcomed the programme of reform being undertaken by the Palestinian Authority and commended progress made to date in what is an extremely challenging environment.

There is strong consensus at EU and international level that Israel must release approx. US$3 billion in withheld tax revenue from the Palestinian Authority and Ireland continues to raise this issue at the EU and international level. Israel has not transferred tax revenue to the Palestinian Authority since April 2025 .In October 2025, the European Council reiterated its call on Israel to release withheld clearance revenues.

As a result of limits on the transfer of cash shekels by Palestinian banks to their Israeli counterparts, there is a risk that Palestinian banks will not be able to make electronic payments and may be forced to resort to cash transactions only. Ireland and partners have called for an increase limit to the shekel transfer to NIS 30 billion or to facilitate an extraordinary transfer of shekels from Palestinian financial institutions.

In September 2025, Ireland was one of 142 countries to endorse the New York Declaration on the Peaceful Settlement of the Question of Palestine and the Implementation of the Two-State solution. The Declaration called for a number of measures to support the viability of the Palestinian economy; the removal of movement and access restrictions and the immediate release of withheld Palestinian tax revenues, the establishment of a new framework for clearance revenue transfers leading to Palestinian ownership over taxation, as well as the full integration of Palestine into the International Monetary and Financial System.

Ireland has joined the Emergency Coalition for the Financial Sustainability of the Palestinian Authority the purpose of which is to stabilise the Palestinian Authority’s finances and preserve its ability to govern, provide essential services, and maintain security, all of which are indispensable to regional stability and to preserving the two-State solution. Along with the Foreign Ministers of the Coalition, I called for Israel to immediately release all Palestinian clearance revenues and cease any measures that obstruct or weaken the Palestinian Authority or risk its collapse.

Ireland welcomes the EU’s payments to the Palestinian Authority of €172 million in 2025 and continues to call for additional emergency funding for the Palestinian Authority to at least the level of the €400 million in additional support provided in 2024.

Ireland has provided more than €95 million in support to the Palestinian people since January 2023. This includes €3 million per year to support the PA’s delivery of education. In 2025 we have also provided €300,000 through the EU’s Pegase mechanism to support the provision of public services.