EU And International Partners Launch $1B Initiative To Support Gaza's Early Recovery

The European Commission and more than a dozen international partners have launched a $1 billion (€883.6 million) initiative to coordinate recovery projects in Gaza, as global donors step up efforts to restore basic services after more than two years of war.Recovery projectsThe Team Gaza Initiative, launched during the second meeting of the Palestine Donor Group in Brussels on Monday, will fund projects focused on restoring water and sanitation infrastructure, clearing debris and solid waste, and rebuilding health, energy, agriculture, and food systems, according to a statement from the Commission on Monday.The initiative is based on the Rapid Damage and Needs Assessment for Gaza, published in April by the European Union (EU), the United Nations (UN), and the World Bank. It is designed to coordinate early recovery efforts among international donors while complementing broader peace and reconstruction initiatives."Our objective is clear: to help build hope, resilience and a better future for the Palestinian people," said Dubravka Šuica, the European Commissioner for the Mediterranean.During a recent visit to Israel and the Palestinian territories, Šuica also secured agreement with Israeli authorities on the next steps for two major waste and water management projects in Gaza, with Monday's meeting providing the first opportunity for donors to coordinate their implementation.International coalitionThe initiative brings together the European Commission, Spain, Denmark, the UK, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden, Belgium, the European Investment Bank, and the World Bank. Australia and Canada have also expressed interest and are expected to join. The Commission did not disclose how much each participating country or institution will contribute.The launch comes as Gaza remains heavily damaged more than two-and-a-half years after the conflict began in October 2023. A fragile ceasefire has been in place since October 2024, while the UN estimated in April that reconstruction would cost $71.4 billion.Palestinian reformsAlongside reconstruction efforts, the Palestinian Authority presented progress on its reform agenda, including improvements in public finances, governance, the business environment, digital government services, water and electricity management, social protection, and education.EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said continued reforms remain central to long-term stability. "The Palestinian Authority must stick with reforms and strengthen its capacity to govern," she said, adding that sustained international backing is essential as Palestinians work toward rebuilding Gaza and pursuing a long-term political solution.Additional financial supportDonors also announced $48.5 million (€41.7 million) in new contributions through the EU's PEGASE financing mechanism, which provides audited and transparent financial support to the Palestinian Authority.The additional commitments from EU member states build on the European Commission's previously announced $360.8 million (€310 million) commitment through PEGASE for 2026 and 2027.Created in 2008, PEGASE has delivered $4.4 billion (€3.8 billion) in support to Palestinians and remains the EU's primary mechanism for channeling financial assistance to the Palestinian Authority under strict oversight and verification procedures.Broader EU strategyThe meeting marked the second session of the Palestine Donor Group following its inaugural gathering in November 2025 and forms part of the EU's broader $1.9 billion (€1.6 billion) multi-year program supporting Palestine's recovery through 2028.Since 1994, the EU has provided nearly $34.8 billion (€30 billion) in assistance to Palestinians.Šuica said the growing number of participating countries demonstrates expanding international support for Gaza's recovery, describing the donor platform as a way to strengthen coordination and deliver projects that restore essential services while improving daily life for civilians.