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AMMAN — The European Commission has launched an €883.6 million ($1 billion) international initiative to support Gaza’s early recovery, aiming to coordinate reconstruction efforts, restore essential services and strengthen the Palestinian Authority.
The initiative, known as the Team Gaza Initiative, was announced during the second meeting of the Palestine Donor Group (PDG) in Brussels, which was co-chaired by European Commissioner for the Mediterranean Dubravka Šuica and Palestinian Authority Prime Minister Mohammad Mustafa, the commission said in a report published on its website.
The meeting brought together representatives from 65 delegations, including ministers, senior officials, international organizations and financial institutions, according to the European Commission.
The Team Gaza Initiative will serve as a platform to coordinate international funding and recovery projects across the Gaza Strip, with a focus on rebuilding critical infrastructure and restoring public services.
Priority areas include water and sanitation systems, waste management, healthcare, energy, agriculture and food security, the commission said.
Funding for the initiative will come from the European Commission, the European Investment Bank, the World Bank and 13 participating countries: Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden and Belgium. Australia and Canada have also expressed interest in joining the initiative.
The programme is based on the Rapid Damage and Needs Assessment for Gaza, published in April 2026 by the European Union, the United Nations and the World Bank, which identified urgent priorities for restoring essential services following widespread destruction.
During the meeting, Šuica also announced progress on two infrastructure projects related to waste and water management following recent discussions with Israeli authorities. The projects were reviewed as part of wider efforts to coordinate recovery plans, the commission said.
The Palestinian Authority also presented an update on its Reform Agenda, highlighting measures related to fiscal management, public governance, digital government services, and improvements to water and electricity networks.
The meeting also produced new financial commitments through the European Union’s PEGASE funding mechanism, which provides assistance to the Palestinian Authority under financial oversight measures.
During a signing ceremony held alongside the conference, the EU and several European partner countries agreed to provide an additional €41.7 million through PEGASE. The contribution comes on top of the European Commission’s previously announced €310 million commitment for 2026 and 2027.
Established in 2008, PEGASE has provided around €3.8 billion in assistance to Palestinians, with financial controls designed to promote transparency and accountability.
The European Union said it has provided nearly €30 billion in assistance to Palestinians since 1994 and reiterated its support for a negotiated two-state solution. EU officials said an effective Palestinian Authority would be essential for achieving long-term peace and stability in the region.
The Brussels meeting was the second gathering of the Palestine Donor Group, following its first session in November 2025. EU officials said the Team Gaza Initiative is intended to improve coordination among donors, implementing partners and regional stakeholders as recovery efforts continue.
