On 13 July 2026, European Commissioner for the Mediterranean Dubravka Šuica addressed the second meeting of the Palestine Donor Group in Brussels, announcing a nearly €900 million early recovery package for Gaza under the Team Gaza Initiative. The funding is intended to restore basic social and economic services, rehabilitate critical infrastructure, and strengthen governance in Gaza. Šuica stressed the urgency of the situation, noting that eight months after the ceasefire, conditions remain fragile and that access for humanitarian staff and materials must be guaranteed.
Šuica also confirmed that the EU is moving ahead with its €1.6 billion multiannual programme for Palestinian Recovery and Resilience, and that €310 million for 2026 and 2027 had been committed through the PEGASE mechanism in May 2026. She thanked 21 donors who have contributed over €3.8 billion through PEGASE since 2008, and noted an additional €41.7 million in pledges since the group's last meeting. The speech did not introduce new numerical targets or institutional structures beyond the already-announced funding, but framed the commitments as concrete steps toward the two-state solution.
The Commissioner highlighted progress on Palestinian Authority reforms, including social protection changes to end payments based on prisoners' status, and textbook revisions for grades 1 to 4 aligned with UNESCO standards. She called for continued work on higher grades and awaited the results of an EU audit on social allowances. Šuica also reported that during a visit to Israel three weeks earlier, she had secured agreement from Israeli Minister Sa'ar on access for two water and sanitation projects in Gaza, to be implemented by UNICEF and UNDP.
The speech carried a conciliatory but firm tone toward Israel, emphasising that a stable Palestinian Authority is in Israel's own interest. Šuica expressed gratitude to a wide range of donor countries and institutions, and noted that Australia and Canada have expressed interest in joining the donor group. The address contained no specific criticism of any party, but reiterated the EU's position that the two-state solution is the only path to peace.
The meeting marks a continuation of EU-led coordination on Palestinian recovery, with the Commission positioning itself as a convenor and funder of early recovery efforts. The impact of the announced funding will depend on access and security conditions on the ground, which remain uncertain. Stakeholders most affected include the Palestinian Authority, which relies on external budget support; humanitarian agencies such as UNICEF and UNDP, which will implement projects; Israeli authorities, whose cooperation is needed for access; and EU taxpayers, who finance the aid programmes.