EU Launches €883.6 Million Gaza Recovery Initiative Amid Ceasefire Uncertainty
July 13, 2026
The Palestinian Authority official underscored the goal of a viable Palestinian state, contrasting with the Israeli stance under its current government.
The European Union launched the Team Gaza Initiative with an initial package of €883.6 million ($1 billion) to support early recovery efforts in Gaza, announced ahead of the Palestine Donor Group ministerial meeting in Brussels.
The ceasefire, established after Hamas’ 2023 attack, is fragile as the second phase—disarmament of Hamas and Israeli troop withdrawal—has stalled for months.
Next steps for ceasefire implementation, particularly disarming Hamas militants, are stalled and affect the timeline for reconstruction.
Mustafa articulated a vision for a resilient, sovereign, contiguous, and viable Palestinian state, noting that the Israeli government currently opposes this governance framework for Gaza.
There is broad EU recognition that settlement activity violates international law, but consensus on broad sanctions is lacking due to differing national sensitivities, notably in Germany.
Luxembourg’s foreign minister indicated broad EU support for severing commercial ties with settlements, while warning about political ramifications ahead of Israel’s October elections.
EU Commissioner Dubravka Šuica said two major Gaza waste and water management projects have secured agreement with Israeli authorities on next steps for implementation, building on recent talks and progress from her Israel visit.
The discussions with Israel and the meeting in Brussels aimed to align on these Gaza projects and facilitate their execution.
In addition, the EU and 11 European countries, including Portugal, pledged an extra €41.7 million to support the Palestinian Authority.
Participants in the initiative include the European Commission, the European Investment Bank, the World Bank, and thirteen governments—Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden, and Belgium—with Australia and Canada expressing interest in joining.
The speed and scale of delivery for reconstruction remain unclear due to the fragility of the Gaza ceasefire between Israel and Hamas.
Summary based on 16 sources
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Sources

AP News • Jul 13, 2026
EU rallies dozens of nations to pledge $1 billion for recovery fund in Gaza | AP News
ABC News • Jul 13, 2026
EU rallies dozens of nations to pledge $1 billion for recovery fund in Gaza
AL-MONITOR: The Middle Eastʼs leading independent news source since 2012 • Jul 13, 2026
EU and partners launch $1 billion scheme to help Gaza recover from war
POLITIKO - News Philippine Politics • Jul 13, 2026
EU and partners launch $1 billion scheme to help Gaza recover from war