European Union launches $1 billion international initiative for early recovery in Gaza

The European Union announced yesterday the launch of a new $1 billion international initiative to support early recovery efforts in the Gaza Strip and enhance coordination among donors, during the second meeting of the Donors Group for Palestine, which was attended by 65 delegations.

The European Commission stated in a press release that the meeting, hosted at its headquarters in Brussels and chaired by EU Commissioner for Mediterranean Affairs Davorina Škvarča and Palestinian Prime Minister Mohammad Mustafa, focused on launching the “Gaza Team” initiative and discussing the Palestinian Authority’s reform agenda.

It clarified that the meeting yielded two main outcomes: an increase in financial commitments through the PEGASE mechanism to support the Palestinian Authority, and the launch of the “Gaza Team” initiative to bolster early recovery efforts in the Strip.

The Commissioner officially launched the “Gaza Team” initiative, which pools financial contributions totaling €883 million (approximately $1 billion) to support early recovery measures across various sectors for civilians in the Gaza Strip.

The initiative is based on the rapid damage and needs assessment in Gaza released last April by the European Union, the United Nations, and the World Bank. It aims to coordinate early recovery projects, including restoring basic services to the population such as water and sanitation infrastructure, debris and solid waste management, and other related activities.

It was reported that an agreement was reached with Israeli occupation authorities regarding the next steps to implement two major projects in the fields of waste and water management in Gaza, noting that the meeting featured the first discussion and coordination concerning these two projects.

The Palestinian Authority reviewed during the meeting the progress made in implementing its reform agenda, including what was agreed upon within the reform matrix with the European Union. These reforms include significant improvements in public financial management and public expenditure, governance reforms, measures to improve the business environment, digitalization of public services, and development of water and electricity networks, as well as reforming the social protection system and updating the education system.

The initiative involves the governments of Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden, and Belgium, along with the European Commission, the European Investment Bank, and the World Bank. Other countries, including Australia and Canada, have expressed interest in joining the initiative.