EU Announces €1.6bn Aid Package For Gaza

The European Union (EU) has announced a €1.6bn multiannual support programme aimed at aiding Palestinian recovery and resilience, with a focus on Gaza and the Palestinian territories.

The programme, unveiled during the first high-level political dialogue between the EU and the Palestinian Authority (PA), will run from 2025 to 2027.

The EU reaffirmed its commitment to a two-state solution and long-term peace in the region while structuring its aid package around three main pillars, which include support for essential services, economic recovery and infrastructure, and private sector development.

“Approximately €620m in grants will go directly to the Palestinian Authority’s budget to support critical public services and administration. This represents an increase from previous years and is intended to help the PA meet urgent needs, including healthcare, education, and governance.

“Financial disbursement will be contingent upon the Palestinian Authority’s progress on a series of key reforms outlined in a reform matrix agreed in November 2024. These include improvements in fiscal sustainability, democratic governance, and public infrastructure. EU funding will be channelled through the PEGASE mechanism, ensuring transparency and accountability.

“A further €576m will fund on-the-ground projects in the West Bank, East Jerusalem, and the Gaza Strip, focusing on economic recovery, infrastructure, and essential services such as water and energy.

“This includes €82m annually to support the United Nations Relief and Works Agency (UNRWA), which provides crucial services to Palestinian refugees in the region,” the statement read.

The EU emphasised that the implementation of these projects will depend on the evolving situation on the ground, particularly in Gaza, where access and stability remain significant challenges.

“In collaboration with the European Investment Bank (EIB), the EU will make up to €400m in loans available to support the Palestinian private sector. These loans, pending EIB approval, are aimed at fostering entrepreneurship and economic resilience across the territories.

To ensure accountability and transparency, the EU will also launch a dedicated donor platform for Palestine.

“This initiative will allow the Palestinian Authority to present progress on its reform agenda and will serve as a coordination hub for international partners supporting the recovery and reconstruction of Gaza.

“The announcement follows a memorandum of understanding signed on July 19, 2024, between the EU and the Palestinian Authority, which outlined a two-stage support plan.

“The first phase delivered €400m in emergency assistance, disbursed between July 2024 and February 2025. The newly announced programme represents the second, more strategic phase of the EU’s engagement,” the statement read.

The European Commission noted that the programme is designed with flexibility to adapt to changing circumstances on the ground and ensure that EU support remains effective and responsive to the needs of the Palestinian people.

EU Announces €1.6bn Aid Package For Gaza is first published on The Whistler Newspaper