On 13 July 2026, the European Commission convened the second meeting of the Palestine Donor Group (PDG) in Brussels, co-chaired by Commissioner for the Mediterranean Dubravka Šuica and Palestinian Authority Prime Minister Mohammad Mustafa. The meeting launched the Team Gaza Initiative, a coordinated international effort bringing together €883.6 million in financial contributions for early recovery in Gaza, and discussed the Palestinian Authority's Reform Agenda. The initiative aims to restore basic services including water, sanitation, waste management, health, energy, agriculture, and food systems, based on the Rapid Damage and Needs Assessment for Gaza released in April 2026 by the EU, UN, and World Bank.
Participating governments 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 in joining. The meeting was 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. Commissioner Šuica reported reaching agreement with Israeli authorities on next steps for two major waste and water management projects in Gaza during her recent mission to Israel and Palestine.
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 in new contribution agreements through the PEGASE mechanism, the EU's financial instrument for channelling support to the Palestinian Authority. This adds to the €310 million committed by the European Commission through PEGASE for 2026 and 2027. Since its creation in 2008, PEGASE has channelled €3.8 billion in support. The first PDG meeting took place in November 2025.
The Palestinian Authority presented progress on its Reform Agenda, including improvements in fiscal and public spending, public governance, business environment, digitalisation of public services, water and electricity management, social protection, and education. The EU has provided nearly €30 billion in assistance to Palestinians since 1994, including a €1.6 billion Multiannual and Comprehensive Programme for Palestine's Recovery and Resilience adopted in April 2025.
High Representative Kaja Kallas stated that the EU is the most reliable partner for the Palestinian people and the strongest supporter of a two-state solution, emphasising that the Palestinian Authority must continue reforms and that the international community's backing is essential. Commissioner Šuica said the PDG is becoming an increasingly important platform for mobilising support and that the Team Gaza Initiative will launch concrete projects to restore essential services and build hope and resilience.