Palestine: the EU launches the Team Gaza Initiative. The Commission: ready to donate 900 million

Brussels – Green light for new financial aid to the Palestinian Authority. In Brussels today (13 July), the European Union and the Palestinian Authority agreed on additional funds to be channelled to Ramallah via the PEGASE mechanism and via the “Gaza Initiative”, a new initiative bringing together EU Member States and other partners, with the aim of maximising existing funding and promoting new funding for the recovery of the Gaza Strip. Participants include: Spain, Denmark, Cyprus, Ireland, Greece, Portugal, Italy, the Netherlands, France, Switzerland, and Belgium. 

The signing ceremony was attended by the European Commissioner for the Mediterranean, Dubravka Šuica, and the Prime Minister of the Palestinian National Authority, Mohammad Mustafa, together with one representative from each of the states participating in the initiative. According to a statement made during the signing ceremony by the European Commission spokesperson, Guillame Mercier, “since 2008, the PEGASE mechanism has been used by 21 donors and has provided over €3.8 billion” to the beneficiary. New commitments totalling 41.7 million euros were announced today, in addition to the commitments made previously during the first meeting of the Donors’ Group for Palestine in November 2025 and the EU’s (through PEGASE) for 2026 and 2027, amounting to €310 million. 

“Eight months on from the start of the ceasefire in Gaza, the situation on the ground for civilians is not improving” and at the same time “the West Bank is under extreme pressure due to settler violence and a financial crisis that is paralysing the Palestinian economy,” Šuica stated during the meeting held after the signing. In this context, “the Palestinian Authority continues to manage its finances in emergency mode, with tax revenues withheld by Israel,” she added. The Commission is therefore proceeding “with the implementation of our multi-annual programme worth €1.6 billion for Palestinian recovery and resilience, for this year and the next.” The Commissioner also added that joining “in support of the ‘Team Gaza Initiative’” means “that we are ready to swiftly launch recovery measures totalling nearly €900 million, or to transfer nearly one billion dollars.” 

Today, the Palestinian Authority also presented progress on implementing its “Reform Agenda”, a reform plan agreed with the EU and a prerequisite for receiving EU aid. This includes significant improvements in the tax and public expenditure sectors, public administration reforms and measures to improve the business environment, the digitalisation of public services, and major modernisation of the water and electricity networks. In highlighting the importance of international aid, the Palestinian Prime Minister reiterated that “since October 2023, the Palestinian economy has contracted by 30 per cent,” while “unemployment has risen to 50 per cent, leaving over 500,000 citizens out of work.” This situation has caused the fiscal deficit to reach “unprecedented levels due to Israel’s continued withholding of our revenue from customs duties and the restrictions imposed on our financial and economic system.” Not only. “Over the last 18 months, Israel has also completely suspended regular transfers of revenue from customs duties to our government, severely limiting the Palestinian government’s fiscal capacity,” he concluded.  

Since 1994, the EU has provided almost €30 billion in aid to Palestine. In April 2025, the Commission adopted a comprehensive, multi-annual programme worth €1.6 billion to support Palestine’s recovery and resilience over the next three years.