This aid is designed to stabilize the region by investing in essential infrastructure and humanitarian assistance, with over half of the funds specifically allocated to strengthening the Palestinian Authority.

As Israel intensifies its military operations in Gaza, targeting Hamas infrastructure, the humanitarian crisis continues to escalate, prompting urgent calls for international intervention.

The financial support will be distributed until 2027, focusing on enhancing governance, financial sustainability, and services for private sector development.

The initiative is part of the EU's broader strategy to bolster economic stability and governance in Palestinian territories amidst ongoing conflict.

The UN has raised alarms about the living conditions for Palestinians in Gaza, citing numerous civilian casualties due to Israeli airstrikes and suggesting that these actions may constitute violations of international law.

European foreign ministers have expressed concerns over the deteriorating humanitarian situation in Gaza and the West Bank, calling for a return to a ceasefire to ensure unhindered humanitarian access and the release of hostages held by Hamas.

EU officials emphasize that any financial aid must be accompanied by reforms within the Palestinian Authority, which has faced criticism for corruption and ineffective governance.

Palestinian Prime Minister Mohammed Mustafa is scheduled to meet with EU ministers to discuss necessary reforms and the current situation, marking a significant high-level political dialogue.

Amidst these developments, Israeli Prime Minister Benjamin Netanyahu has vowed to secure the return of hostages held by Hamas, as negotiations for ceasefires and exchanges continue with limited progress.

The aid package is particularly focused on critical sectors such as healthcare, education, and job creation, aimed at alleviating the economic hardships faced by Palestinians due to ongoing political conflicts.

On April 14, 2025, the European Union announced a significant financial aid package of up to 1.6 billion euros, approximately $1.8 billion, aimed at supporting the Palestinian Authority and funding projects across the West Bank, Jerusalem, and Gaza.

EU officials hope that the Palestinian Authority can assume governance of Gaza post-conflict, although this prospect is currently rejected by the Israeli government.