The EU is stepping up its international support for the Palestinians through an initiative for the swift recovery of Gaza and greater international coordination

On 13 July, the European Commission held the second meeting of the Donors’ Group for Palestine, co-chaired by the Commissioner for the Mediterranean, Dubravka Šuica, and the Prime Minister of the Palestinian Authority, Mohammad Mustafa. Sixty-five delegations gathered in Brussels to launch a new early recovery initiative in Gaza and discuss the Palestinian Authority’s reform programme.

The meeting will deliver two key outcomes: an increase in financial commitments through the PEGASE mechanism and the launch of the Gaza Team initiative. Participants include ministers and senior officials from EU Member States and partner countries, as well as representatives of international and regional organisations and financial institutions. The meeting will be attended for the first time by the High Representative of the Peace Board, Nikolay Mladenov, and the Chair of the National Committee for the Administration of Gaza, Ali Shaath.

Gaza Team Initiative

It was agreed at the meeting to coordinate international efforts to provide greater financial support for early recovery efforts in Gaza. This is in line with the Gaza Peace Plan and United Nations Security Council Resolution 2803, and complements other international initiatives in this area.

Commissioner Šuica has officially launched the ‘Gaza Team initiative’, which brings together a financial contribution of EUR 883.6 million to support initial recovery measures across various sectors, for the benefit of the civilian population of Gaza.

Participating countries include Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden and Belgium, alongside the European Commission, the European Investment Bank and the World Bank. Other countries, such as Australia and Canada, have expressed an interest and are expected to join the initiative.

The initiative stems from the Rapid Damage and Needs Assessment for Gaza (April 2026), published by the EU, the United Nations and the World Bank. Its aim is to coordinate early recovery projects in Gaza to restore basic services for the population, such as water and sanitation infrastructure, the management and removal of rubble and solid waste, and other health, energy, agricultural and food systems.

During her recent mission to Israel and Palestine, Commissioner Šuica reached an agreement with the Israeli authorities on the next steps for the implementation of two major projects in the fields of waste management and water in Gaza. Today’s meeting provided an opportunity for an initial exchange of views and to reach a consensus on these projects.

 

Progress under the reform programme

The Palestinian Authority presents the progress made in implementing its reform programme, including the specific reforms set out in the reform matrix agreed with the EU.

These include significant improvements in the fiscal and public expenditure sectors, public governance reforms and measures to improve the business environment, the digitalisation of public services, and significant improvements to the water and electricity management networks. In addition, the Palestinian Authority will outline the further measures taken to reform its social protection system and modernise its education system.

 

EU financial assistance under the PEGASE programme

To channel funds to the Palestinian Authority securely and transparently, the Commission relies on PEGASE, a mechanism established by the EU in 2008 with high standards of control enforced through ex ante audits and ex post verifications.

Donors participating in PEGASE help to significantly reduce the transaction costs associated with financial aid to the Palestinian Authority. The mechanism also enables greater ownership, transparency and effectiveness of international contributions to the Palestinian Authority.

Since its inception, PEGASE has channelled aid to the Palestinian people totalling EUR 3 800 million.

During an event held on the sidelines of the Donors’ Group for Palestine, the EU, together with Spain, Denmark, Cyprus, Ireland, Greece, Portugal, Italy, the Netherlands, France, Switzerland and Belgium, signed new contribution agreements worth €41.7 million for additional financial assistance from Member States channelled through PEGASE, building on the support provided since the Group’s first meeting. This is in addition to the EUR 310 million that the European Commission has committed through PEGASE for 2026 and 2027.

 

Background

The EU is a long-standing partner of the Palestinian people and advocates for a two-state solution, with Israelis and Palestinians living side by side in peace and security. The EU consistently demonstrates its support, both political and financial.

Supporting strong and viable governance by the Palestinian Authority is essential to achieving a sustainable and long-term peace for the Palestinian people and for the Middle East region as a whole.

Since 1994, the EU has provided nearly EUR 30 000 million in aid. In April 2025, the Commission adopted a comprehensive, multi-annual programme worth EUR 1 600 million to support Palestine’s recovery and resilience, covering the next three years. The programme is currently being implemented, and the Donors’ Group for Palestine is one of its key outcomes.

Direct financial aid to the Palestinian Authority is conditional on the implementation of its reform programme. The Donors’ Group for Palestine forms an integral part of the EU’s programme for Palestine. It was announced on several occasions, notably by President von der Leyen and at the United Nations General Assembly in New York during the conference on the two-state solution jointly organised by France and the Kingdom of Saudi Arabia. This is the second meeting of the Palestine Donors’ Group; the first took place in November 2025.

The ‘Team Gaza’ initiative launched during this meeting will contribute to the coordination and harmonisation of efforts amongst international donors, as well as with their implementing partners, for the swift recovery of Gaza. It is an open platform for cooperation that fosters synergies and increases the impact of early recovery initiatives, in particular by facilitating exchanges with Israel and working in coordination and complementarity with efforts within the framework of the Peace Council.

 

More information: European Commission