Today, the European Commission is convening the second meeting of the Palestine Donor Group (PDG), co-chaired by Commissioner for the Mediterranean Dubravka Šuica and Palestinian Authority's (PA) Prime Minister Mohammad Mustafa. 65 delegations gather in Brussels for the launch of a new Initiative for early recovery in Gaza and to discuss the Palestinian Authority's Reform Agenda.
The meeting is delivering on two key outcomes: increased financial pledges through the PEGASE mechanism, and the launch of the Team Gaza 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 is attended for the first time by the High Representative of the Board of Peace, Nikolay Mladenov, and the Head of the National Committee for the Administration of Gaza, Ali Shaath.
Team Gaza Initiative
The meeting agreed on coordinated international efforts to provide enhanced financial support for early recovery efforts in Gaza. This is in line with the Gaza Peace Plan and the United Nations Security Resolution 2803, and complementary to other international efforts in this area.
Commissioner Šuica is officially launching the “Team Gaza Initiative” bringing together €883.6 million of financial contribution to support early recovery actions in various sectors, to the benefit of civilians in Gaza.
The governments of Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden and Belgium, together with the European Commission, the European Investment Bank and the World Bank, are participating. More countries, including Australia and Canada, have expressed interest and are expected to join.
The Initiative is rooted in the Rapid Damage and Needs Assessment for Gaza (April 2026) released by the European Union, the United Nations and the Word Bank. It is intended to coordinate early recovery projects in Gaza to address the restoration of basic services for the population; this would include water and sanitation infrastructure, debris and solid waste management and removal, and restoring health, energy, agriculture and food systems.
During her recent mission to Israel and Palestine, Commissioner Šuica reached agreement with the Israeli authorities on next steps for the implementation of two major projects in the areas of waste and water management in Gaza. The meeting today included a first exchange and alignment on these projects.
Progress under the Reform Agenda
The PA is presenting the progress achieved on implementation of its Reform Agenda, including specific reforms under the agreed Reform Matrix with the EU.
This includes significant improvement in fiscal and public spending sectors, reforms in public governance and measures to improve the business environment, the digitalisation of public services, and significant upgrades of the water and electricity management network. Moreover, the PA is presenting the additional steps taken to reform its social protection system and modernise its education system.
EU financial support under PEGASE
To securely and transparently channel funds to the Palestinian Authority, the Commission relies on PEGASE, a mechanism created by the EU in 2008 with high standards of control applied through ex ante audit and ex post verification.
Donors under PEGASE contribute to the considerable reduction of transaction costs for financial support to the Palestinian Authority. It also allows for increased ownership, transparency and effectiveness of international contributions to the Palestinian Authority.
Since its creation, PEGASE channelled support to Palestinian people for a total of €3.8 billion.
During an event on the margins of the PDG, the EU together with Spain, Denmark, Cyprus, Ireland, Greece, Portugal, Italy, the Netherlands, France, Switzerland and Belgium, signed €41.7 million of new contribution agreements in additional financial support from Member States channelled through PEGASE, building on the support delivered since the first PDG meeting. This comes in addition to the €310 million that the European Commission committed through PEGASE for 2026 and 2027.
Background
The EU is a long-standing partner of the Palestinian people and advocates for the two-state solution with Israelis and Palestinians living in security and in peace side by side. The EU is constantly demonstrating its support both politically and financially.
Supporting a strong and viable governance by the Palestinian Authority is key to achieve a sustainable and long-term peace, for the Palestinian people, and the Middle East region as a whole.
Since 1994, the EU has provided almost €30 billion in assistance. In April 2025, the Commission adopted a €1.6 billion Multiannual and Comprehensive Programme to support Palestine's Recovery and Resilience, covering the next three years. The programme is currently under implementation and the PDG is one of the main deliverables of the Programme.
Direct financial support to the Palestinian Authority is based on the implementation of its Reform Agenda. The Palestine Donor Group is an integral part of the EU programme for Palestine. It was announced at several instances, including by President von der Leyen and at the United Nations General Assembly in New York during the two-state solution conference co-organised by France and the Kingdom of Saudia Arabia. This is the second meeting of the Palestine Donor Group, the first one took place in November 2025.
The Team Gaza Initiative launched during this meeting will contribute to coordination and alignment of efforts between international donors, as well as with their implementing partners, for the early recovery of Gaza. It is an open platform of cooperation that allows synergies and increases the impact of early recovery efforts, including facilitating exchanges with Israel and in coordination and complementarity to the efforts under the Board of Peace.
For More Information
EU Multiannual and Comprehensive Programme for Palestine Recovery and Resilience
EU's support to recovery and reconstruction in Gaza
Quote(s)
The EU is the most reliable and credible partner for the Palestinian people. We are the largest donor and the strongest supporter of a Two-State Solution. To turn this into reality, the Palestinian Authority must stick with reforms and strengthen its capacity to govern. The people of Gaza need sustained financial support to meet basic needs, recover and rebuild their lives. Ultimately, the building of a Palestinian state must be owned and led by the Palestinian people, but they need the backing of the international community. The many countries gathered in Brussels today show that this support is there.
Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission
The Palestine Donor Group is becoming an increasingly important platform for mobilising international support for the Palestinian people and advancing the reforms needed for an effective, transparent and accountable Palestinian Authority. As more partners join these efforts, we are building a stronger international coalition to help meet both today's urgent needs and tomorrow's challenges. The EU has the political commitment, the partnerships and the financial tools to contribute to Gaza's early recovery. Through the Team Gaza Initiative we will launch concrete projects that will restore essential services and improve people's daily lives. Our objective is clear: to help build hope, resilience and a better future for the Palestinian people.
Dubravka Šuica, Commissioner for the Mediterranean
- Publication date
- 13 July 2026
- Author
- Representation in Cyprus