The European Commission hosted the first meeting of the Palestine Donor Group (PDG) in Brussels, co-chaired by Commissioner for the Mediterranean Dubravka Šuica and Palestinian Prime Minister Mohammad Mustafa. The event brought together ministers and senior officials from about 60 international and regional stakeholders, including EU Member States, Arab countries, potential donors to the Gaza Peace Plan, as well as organizations and financial institutions.
The meeting is part of the EU’s Multiannual Comprehensive Programme for Palestinian recovery and resilience, adopted in April. President Ursula von der Leyen previously highlighted this commitment in her State of the Union speech in September 2025.
Participants discussed the fiscal situation of the Palestinian Authority and reviewed progress on its Reform Agenda. The agenda is linked to a support programme worth up to €1.6 billion over three years. Discussions also addressed economic recovery efforts in the West Bank and recent developments regarding Gaza after UN Security Council Resolution 2803 was adopted on November 17, 2025.
The Palestinian Authority outlined achievements in fiscal, economic, and governance reforms during the meeting. It also reported on improvements in basic services such as education, health care, and private sector development.
“The Commission will continue to support all efforts to stabilise the region, including the West Bank and Gaza transitional governance, recovery and reconstruction, with the Reform Agenda at the core of its action,” according to an official statement.
Financial support from donors is managed through PEGASE—a mechanism established by the EU in 2008 that aims to ensure transparency through strict audit controls. Since its inception, PEGASE has provided €3.7 billion in support for Palestinians.
On the sidelines of the PDG meeting, new contribution agreements totaling more than €82 million were signed by Germany, Luxembourg, Slovenia, Spain, and others through PEGASE. This brings total pledges for 2025 to over €88 million when combined with earlier contributions from Finland, Ireland Italy and Spain.
The European Union has been supporting Palestinians since 1994 with nearly €30 billion in assistance. In April 2025 it launched a €1.6 billion programme focused on recovery and resilience over three years; since October 2023 commitments have reached almost €740 million in grants and loans.
Direct financial support is closely tied to implementation of reforms by the Palestinian Authority. The establishment of PDG was announced by President von der Leyen at several forums including a two-state solution conference held alongside France and Saudi Arabia at the United Nations General Assembly in New York on September 22, 2025.
The Commission also continues its backing for UNRWA to help maintain essential services for Palestine refugees.
