Announced Major Financial Support.. The European Union Leads International Efforts for Strong and Sustainable Palestinian Governance

SadaNews - The European Commission held the first meeting of the Palestine Donor Group (PDG) in Brussels today, co-chaired by the European Commissioner for Neighborhood and Enlargement, Dubravka Šuica, and Palestinian Prime Minister Muhammad Mustafa.

This meeting marks a significant achievement within the comprehensive multi-year program for the recovery of Palestine and its resilience, which was adopted in April. It embodies the European Union's commitment to the stability of the region, as confirmed by President Ursula von der Leyen in her State of the Union address in September 2025, according to a statement from the European Commission.

The donor group meeting gathered ministers and high-ranking officials from about 60 major international and regional entities, including EU member states, Arab countries, potential donors for the Gaza peace plan, as well as international and regional financial organizations.

Participants discussed the financial situation of the Palestinian Authority, as well as the status of implementing the reform agenda linked to the comprehensive multi-year program to support Palestine, valued at 1.6 billion euros. They also exchanged views on the economic recovery in the West Bank.

Progress on the Reform Agenda

The Palestinian-European reform matrix, agreed with the Palestinian Authority in November 2024, is based on the ambitious reform agenda of the Palestinian Authority.

Today’s meeting provided an opportunity to review progress made in this area and to attract political support from international partners for this reform plan.

In this context, the Palestinian Authority presented updates on its financial, economic, and administrative reforms, as well as achievements in delivering essential services, including education, health, and private sector development. The donor group also discussed the latest developments and initiatives regarding the future of Gaza, following the adoption of UN Security Council Resolution 2803 on Gaza on November 17, 2025.

The European Commission stated it will continue supporting all efforts aimed at stabilizing the region, including transitional governance in the West Bank and Gaza, as well as recovery and reconstruction efforts, placing the reform agenda at the core of its work.

European Financial Support Through the PEGASE Mechanism

To ensure the secure and transparent transfer of funds to the Palestinian Authority, the Commission relies on the PEGASE mechanism, established by the EU in 2021, which ensures high oversight standards through prior and subsequent audits.

Donors through the PEGASE mechanism significantly reduce the costs of financial transactions to support the Palestinian Authority. The mechanism also enhances ownership, transparency, and effectiveness in international community contributions to the Authority.

During an event held on the sidelines of the donor group meeting, the EU, alongside Germany, Luxembourg, Slovenia, and Spain, signed new contribution agreements exceeding 82 million euros as additional financial support from member states through the PEGASE mechanism.

The total commitments this year have reached over 88 million euros, including previous contributions from Finland, Ireland, Italy, and Spain.

The EU is a long-term partner of the Palestinian people and a defender of the two-state solution, where Israelis and Palestinians can live together in peace and security. The EU has demonstrated its support politically and financially. As stated in the Commission's announcement.

Supporting strong and sustainable governance of the Palestinian Authority is a key element to achieve lasting and sustainable peace for the Palestinian people and the region as a whole.

Since 1994, the EU has provided nearly 30 billion euros in aid. In April 2025, the Commission adopted a comprehensive multi-year program worth 1.6 billion euros to support Palestine's recovery and resilience over the next three years, a program currently in implementation. As of October 2023, EU commitments amounted to 578.4 million euros in the form of grants and loans.

Direct financial support for the Palestinian Authority is based on the implementation of its reform agenda. The donor group is a core part of the EU's program for Palestine and has been announced on several occasions, including statements by President von der Leyen and at the UN during the two-state solution conference co-organized by France and Saudi Arabia on the sidelines of the UN General Assembly in New York on September 22, 2025.

The Commission also supports the work of the United Nations Relief and Works Agency for Palestinian Refugees (UNRWA) to ensure the continuation of essential services on the ground.

High Representative of the EU for Foreign Affairs and Security Policy / Vice President of the European Commission, Josep Borrell, stated, "Reform of the Palestinian Authority is essential for it to be able to manage the future Palestinian state. The Palestinian Authority has the full support of the EU in these efforts."

She added, "With the UN Security Council voting in favor of an international force for stability, we have now entered a new phase that provides a real opportunity to move from the fragile ceasefire to a stable future for the Palestinian people."

She continued, "The EU has much to offer towards peace, from our civilian missions in the region concerned with border assistance and justice sector reform, to our ongoing financial support for the Palestinian Authority."

Dubravka Šuica, the European Commissioner for Neighborhood, remarked, "The EU is a strong and long-term partner for the Palestinian people. Although the current ceasefire in Gaza remains fragile, it offers renewed hope for achieving lasting peace and security for both Palestinians and Israelis. Achieving this requires active Palestinian engagement and a strong, reformed Palestinian Authority capable of managing its people's affairs."

She added, "That is why we held the Palestine Donor Group meeting. The group will support the implementation of Palestinian reforms, contribute to enhancing governance, improving economic capacity, and driving recovery efforts in Gaza. Palestinians must have a critical role in shaping their future, and we are here to support them in that."