EU’s €883m Gaza initiative faces scrutiny over Palestinian Authority governance

EU’s €883m Gaza initiative faces scrutiny over Palestinian Authority governance
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The European Commission said 65 delegations met in Brussels to launch a new “Team Gaza Initiative” worth €883.6 million and to discuss financial support for Palestinians and reforms by the Palestinian Authority.

The Commission said in a statement on Monday the gathering was the second meeting of the Palestine Donor Group, co-chaired by EU Commissioner for the Mediterranean Dubravka Šuica and Palestinian Authority Prime Minister Mohammad Mustafa.

It stated that the meeting focused on two outcomes — increased financial pledges through PEGASE, an EU mechanism used since 2008 to channel funds to the Palestinian Authority, and the launch of the Team Gaza Initiative for Gaza’s early recovery.

The Commission said participating governments in the Team Gaza Initiative 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.

Australia and Canada have expressed interest and are expected to join.

What the Team Gaza Initiative covers

The Commission said the €883.6 million package is intended to support early recovery actions for civilians in Gaza, including restoring basic services such as water and sanitation, debris and solid waste removal, and restoring health, energy, agriculture and food systems.

It added the initiative is based on a Rapid Damage and Needs Assessment for Gaza published in April 2026 by the EU, the United Nations and the World Bank.

Šuica agreed next steps with Israeli authorities on implementing two projects in Gaza in waste and water management during a recent mission to Israel and Palestine, the Commission said, adding that participants held an initial exchange on those projects at the meeting.

On funding via PEGASE, the Commission said it and a group of member states and partners signed €41.7 million in new contribution agreements on the margins of the meeting, alongside €310 million it said the Commission has committed through PEGASE for 2026 and 2027.

PEGASE has channelled €3.8 billion in support to Palestinians since it was created.


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