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, with 65 delegations present. The meeting launched the Team Gaza Initiative, a coordinated international effort pooling €883.6 million for early recovery projects in Gaza, and reviewed progress on the Palestinian Authority's Reform Agenda.
The Team Gaza Initiative, announced by Commissioner Šuica, brings together contributions from Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden, Belgium, the European Commission, the European Investment Bank, and the World Bank. Australia and Canada have expressed interest in joining. The initiative is based on the Rapid Damage and Needs Assessment for Gaza released in April 2026 by the EU, the UN, and the World Bank. It aims to coordinate early recovery projects restoring basic services, including water and sanitation infrastructure, debris and solid waste management, and health, energy, agriculture, and food systems. During a recent mission to Israel and Palestine, Commissioner Šuica secured agreement with Israeli authorities on next steps for two major waste and water management projects in Gaza, which were discussed at the meeting.
On the Reform Agenda, the Palestinian Authority presented progress on fiscal and public spending improvements, public governance reforms, measures to improve the business environment, digitalisation of public services, upgrades to water and electricity networks, and reforms to social protection and education systems. These reforms are tied to EU financial support under the PEGASE mechanism, which has channelled €3.8 billion since its creation in 2008. On the margins of the PDG, the EU, Spain, Denmark, Cyprus, Ireland, Greece, Portugal, Italy, the Netherlands, France, Switzerland, and Belgium signed €41.7 million in new contribution agreements through PEGASE, adding to the €310 million committed by the European Commission for 2026 and 2027. The first PDG meeting took place in November 2025.
The meeting was attended for the first time by High Representative of the Board of Peace Nikolay Mladenov and Head of the National Committee for the Administration of Gaza Ali Shaath. High Representative Kaja Kallas stated that the EU is the most reliable partner for Palestinians 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 present. Commissioner Šuica noted that 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.
The Team Gaza Initiative is an open cooperation platform designed to align international donor efforts, facilitate exchanges with Israel, and complement the work of the Board of Peace. It follows the EU's €1.6 billion Multiannual and Comprehensive Programme for Palestine's Recovery and Resilience, adopted in April 2025 and currently under implementation. The EU has provided nearly €30 billion in assistance to Palestinians since 1994.