The embassy in Dhaka announced that Sweden would increase aid to the Palestinians after recognizing the State of Palestine, a move that received praise from the Palestinian president and criticism from Israel. Sweden, the first long-term EU state to recognize Palestine, made this decision following Prime Minister Stefan Lofven's commitment to a two-state solution. Sweden stated that its recognition of Palestine would meet international law criteria and facilitate peace talks, aiming to create a future where Israel and Palestine can coexist peacefully. The Palestinians have long sought independence in the West Bank, East Jerusalem, and the Gaza Strip, with Yasser Arafat declaring a Palestinian state in 1988. The UN upgraded the Palestinians' status to a "non-member observer state" in 2012. Swedish Foreign Minister Margot Wallstrom stated that their decision aims to bring new momentum to the stalled peace process, hoping other EU countries will follow suit. Sweden also announced a five-year aid strategy with increased support for Palestinian state-building, focusing on self-sufficiency, women's empowerment, and resilience to environmental challenges.