European Commission Agrees €883.6 Million Fund for Gaza Recovery

The European Commission held the second meeting of the Palestinian Donor Group in Brussels on Monday, launching the Team Gaza Initiative, which provides coordinated funding of €883.6 million (approximately Rp16.9 trillion or US$1.03 billion) to support early recovery in Gaza. The funds will be used for the water and sanitation, debris clearance, waste management, health, energy, agriculture, and food systems sectors. The initiative is supported by the European Commission, the European Investment Bank, the World Bank, and a number of countries, including Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden, and Belgium. Australia and Canada also expressed interest in joining the initiative. The second meeting of the Palestinian Donor Group also resulted in additional funding commitments through the EU’s PEGASE mechanism, with member states signing new contribution agreements worth €41.7 million (approximately US$48.7 million). This funding complements the European Commission’s previous commitment of €310 million (approximately US$362.3 million) through the PEGASE mechanism for the 2026-2027 period. The European Commission stated that the Team Gaza Initiative aims to coordinate international support to restore basic services and infrastructure in Gaza, while complementing global efforts for the recovery of the Palestinian enclave devastated by Israel’s genocidal war. The Commission also highlighted the progress made by the Palestinian Authority in implementing governance, fiscal, public administration, social protection, education, and infrastructure reforms in line with its reform agenda.