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The EU's funding to the 2017 budget of the UN Relief and Works Agency for Palestine Refugees in the Near East will cover the agency's essential services such as education, health care, relief and social services.
The funding will help pay the salaries of 32,000 local UNRWA staff, many of whom are Palestinian refugees, and contribute to the costs of 700 UNRWA schools and 140 UNRWA health-care centres.
The EU also signed an agreement to continue supporting UNRWA in the 2017-2020 period.
The UN agency provides education to 500,000 Palestinian refugee children and health care to 3.5 million Palestinians.