Development cooperation ,26.11.2015

EU Pegase-mechanism


PEGASE is the EU’s main mechanism to support Palestinian state building and the implementation of the Palestine National Development Plan. Pegase mechanism is a program of direct financial support combined with technical support interventions of the Commission. Through Pegase the European Commission and other donors (incl. Finland) generate Direct Financial Support towards the Palestinian Administration’s (PA) recurrent costs. Due to the political situation the PA suffers from chronic funding shortage and is dependent on external aid. A new window was opened to Pegase in 2013 with the aim of supporting the East Jerusalem hospitals. The East Jerusalem hospitals are suffering from financial crisis which threatens their very existence. Their collapse would have severe consequences for the medical care of Palestinians. Supporting development in East Jerusalem is also a policy goal of both the PA and the EU. In 2014 Finland’s support amounting to 2,5 million euros, was directed to the East Jerusalem Hospitals component. The aid directed via the PA made the continuation of the operations of East Jerusalem hospital network possible and hence the continuation of medical services to the Palestinian population. The relationship between the PA and the East Jerusalem hospitals continued. The hospitals play a key role in connecting the East Jerusalem to the rest of Palestinian territories. The program also enabled the hospitals to further develop their medical services. In the years 2015-2016 Finland's support of 4 million euros will be anew directed to East Jerusalem hospitals. The aim of Finland’s support will be to guarantee equal access to health care for all Palestinians. Even if Pegase mechanism resembles budget support it is not budget support but financial support for expenses defined in advance.

Funding decision  26.11.2015

4 000 000 €

Objectives monitored by OECD's Development Assistance Committee

  • Participatory development/Good governance

Field of activity

  • Medical services 50%
  • Public sector policy and administrative management 50%

Special target group

  • women
  • girls
  • children
  • youth
  • elderly people
  • people with disability
  • indigenous peoples / ethnic minorities

Funding channel

  • Euroopan unioni
  • Kehitysmaan julkinen sektori



Code for the object of funding