IRIA News

4 minute read

The European Union has unveiled a $1 billion recovery and reconstruction fund for Gaza, bringing together dozens of governments and international organizations to support early rebuilding efforts after more than two years of conflict that has devastated the Palestinian enclave.

Announced during a meeting of the Palestine Donors Group in Brussels, the Team Gaza Initiative aims to finance urgent recovery projects, including restoring water and sanitation services, rebuilding health infrastructure, clearing debris, and reviving agriculture and food systems.

While European officials described the initiative as an important first step, they acknowledged that the funding represents only a fraction of the estimated $71 billion required to rebuild Gaza over the next decade.

Today we held the second #PalestineDonorGroup meeting at a critical moment for the Palestinian people and for regional stability. We are bringing the international community together to turn its commitment to the Palestinian people into coordinated action and concrete delivery.… pic.twitter.com/zoiOb7Q5As

— Dubravka Šuica (@dubravkasuica) July 13, 2026

Recovery Initiative for Essential Services

The initial funding package of approximately $1 billion will support projects designed to improve living conditions and restore critical infrastructure damaged during the conflict.

Priority areas include repairing water and sanitation networks, removing rubble and waste, restoring hospitals and healthcare facilities, rebuilding energy infrastructure, and supporting agricultural production and food security.

Officials said the initiative is intended to accelerate Gaza’s early recovery while laying the foundation for longer-term reconstruction.

The donor initiative includes participation from the European Commission, Spain, France, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, Belgium, Sweden, Switzerland, and Japan.

International financial institutions, including the World Bank and the European Investment Bank, are also participating, while Australia and Canada are expected to join. No detailed breakdown of financial contributions from individual participants has been released.

European officials stressed that financial commitments alone will not be enough without conditions that allow reconstruction work to proceed.

European Commissioner for the Mediterranean Dubravka Suica said the initiative is intended to provide hope and support for Gaza’s population through practical recovery measures.

She said donors are focusing on “early recovery” projects and emphasized the need for conditions on the ground that would allow assistance to reach civilians effectively.

European Union foreign policy chief Kaja Kallas described the bloc as one of the largest supporters of the Palestinian people and reiterated its backing for a two-state solution.

According to Kallas, the Brussels meeting marked the second gathering of the Team Gaza Initiative, which aims to coordinate international support for Gaza’s recovery.

Humanitarian Situation Remains Severe

European officials described conditions inside Gaza as continuing to deteriorate despite a ceasefire agreement reached last October.

EU Commissioner for Equality, Preparedness and Crisis Management Hadja Lahbib said humanitarian conditions remain extremely difficult, pointing to continued shelling, the spread of disease and ongoing civilian suffering.

She called for greater humanitarian access to Gaza and increased political engagement to facilitate aid delivery and reconstruction efforts.

Although the intensity of fighting has declined since the ceasefire was reached, violence has continued in parts of the territory, contributing to further casualties and damage.

Funding Falls Far Below Reconstruction Needs

The newly announced fund covers only a small portion of the resources experts estimate will be necessary to rebuild Gaza. A joint assessment published earlier this year by the European Union and the United Nations estimated that Gaza will require more than $71 billion over the next ten years for recovery and reconstruction.

The Gaza Rapid Damage and Needs Assessment concluded that approximately $26.3 billion will be needed during the first 18 months alone to restore essential public services, rebuild critical infrastructure, and support economic recovery.

The assessment highlighted widespread destruction to housing, healthcare facilities, transportation networks, utilities, and other public infrastructure following years of conflict.

The European Union remains the largest supporter of the Palestinian people. As we deliver our €1.6 billion support package, today we once again reaffirmed our commitment to strengthening and better coordinating international support.

Through our secure financial mechanism… pic.twitter.com/oshCTIx8Ax

— Dubravka Šuica (@dubravkasuica) July 13, 2026

Long-term Reconstruction Expected

The Team Gaza Initiative is expected to serve as a platform for coordinating international funding and reconstruction efforts as additional donor countries and organizations join the program.

Officials said the current funding package is intended to launch immediate recovery projects rather than fully finance Gaza’s long-term rebuilding.

European leaders have indicated that broader international cooperation will be necessary to address the territory’s extensive reconstruction needs and restore essential services for Gaza’s population.

The initiative is expected to expand as governments, international organizations, and development institutions continue discussions on financing future reconstruction projects.