Palestinian Authority Lacks Budget for Essential Services

Annette Young announced the arrival of Joost Hiltermann, the International Crisis Group’s Special Adviser for the Middle East and North Africa and a senior training officer. Hiltermann will focus on strengthening the Group’s work in the region, particularly on the Palestinian Authority (PA) and its institutions.

Hiltermann argues that the PA’s financial crisis is not a sudden emergency but a prolonged process of institutional and economic erosion. He notes that the Authority has already lost much of its ability to deliver essential services, pay public‑sector salaries in full, maintain infrastructure, and support education and health care. These deficits are compounded by settlement expansion, settler violence and Israeli restrictions, which together create a hostile environment for Palestinian governance and economic stability.

The combination of ongoing settlement activity, security restrictions and financial pressures poses a continuing threat to Palestinian institutions and economic life. Hiltermann’s assessment underscores the need for sustained international attention to the PA’s capacity challenges and the broader conditions that shape its future.