Brussels, 20 November 2025
Today, the European Commission convened 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.
This is a clear deliverable of the EU’s Multiannual Comprehensive Programme for Palestinian recovery and resilience adopted in April, as well as an expression of the EU’s commitment to the stability of the region, as underlined by President Ursula von der Leyen in her State of the Union speech in September 2025.
The PDG gathered ministers and senior officials from around 60 key international and regional players. These included EU Member States, Arab countries, potential donors to the Gaza Peace Plan, as well as international and regional organisations and financial institutions. Together, participants discussed the Palestinian Authority’s fiscal situation, as well as the state of play of the implementation of its Reform Agenda linked to the EU’s Multiannual Comprehensive Programme of support worth up to €1.6 billion for Palestine. They also exchanged on the economic recovery of the West Bank.
Progress under the Reform Agenda
The Palestinian-EU reform matrix, as agreed with the Palestinian Authority in November 2024, is anchored in the ambitious Reform Agenda of the Palestinian Authority. Today’s meeting was first and foremost an opportunity to take stock of the progress made in this respect and draw political support from international partners on this ambitious reform plan.
Against this background, the Palestinian Authority presented its progress to date in fiscal, economic and governance reforms. It also explained the achievements made in terms of basic service provision, including on education, health and private sector development. Secondly, the PDG also discussed latest developments and initiatives related to the future of Gaza, following the adoption of UN Security Council Resolution 2803 on Gaza on 17 November 2025.
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.
EU financial support under PEGASE
To securely and transparently channel funds to the Palestinian Authority, the Commission relies on PEGASE, a mechanism created by the EU in 2008 with high standards of control applied through ex ante audit and ex post verification.
Donors under PEGASE contribute to the considerable reduction of transaction costs for financial support to the Palestinian Authority. It also allows for increased ownership, transparency and effectiveness of international contributions to the Palestinian Authority.
Since its creation, PEGASE channelled support to Palestinian people for a total of €3.7 billion.
During an event on the margins of the PDG, the EU together with Germany, Luxembourg, Slovenia, and Spain, signed more than €82 million of new contribution agreements in additional financial support from Member States channelled through PEGASE. The total amount pledged this year is of more than €88 million, including earlier contributions from Finland, Ireland Italy and Spain.
Background
The EU is a long-standing partner of the Palestinian people and advocate for a Two-State solution with Israelis and Palestinians living in security and in peace side by side. It has shown its support both politically and financially.
Supporting a strong and viable governance by the Palestinian Authority is key to achieve a sustainable and long-term peace, for the Palestinian people and the region as a whole.
Since 1994, the EU has provided almost €30 billion in assistance. In April 2025, the Commission adopted a €1.6 billion Multiannual and Comprehensive Programme to support Palestine’s Recovery and Resilience, covering the next three years. The programme is currently under implementation. Since October 2023, the EU commitments amount to almost €740 million in grants and loans.
Direct financial support to the Palestinian Authority is rooted in the implementation of its Reform Agenda. The Palestine Donor Group is an integral part of the EU programme for Palestine and was announced at several instances, including by President von der Leyen and at the United Nations General Assembly in New York at the two-state solution conference co-organised by France and the Kingdom of Saudia Arabia on the margins of the United Nations General Assembly in New York, on 22 September 2025.
The Commission is also supporting the work of the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) to ensure key services on the ground.
For more information
- EU Multiannual and Comprehensive Programme for Palestine Recovery and Resilience ;
- EU support to Palestinians (will be available later);
- EU-Palestine relations
- List of participants
Quote(s)
Reform of the Palestinian Authority is fundamental for it to govern a future Palestinian state. The Palestinian Authority has the EU’s full support in these efforts. With the UN Security Council vote for an international stabilization force, we have now entered a new phase where there is a real chance to move beyond the fragile truce towards a stable future for the Palestinian people. The EU has a lot to offer to secure peace, from our two civilian missions in the region working on border assistance and justice reforms, to our continued financial backing of the Palestinian Authority.
Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission
The EU is a strong and long-standing partner of the Palestinian people. The current ceasefire in Gaza remains fragile, but it offers renewed hope for lasting peace and security for both Palestinians and Israelis. Achieving this requires meaningful Palestinian participation and a strong, reformed Palestinian Authority capable of governing its people. This is why we convened the Palestinian Donor Group today. The Group will support the implementation of Palestinian reforms, helping strengthen its governance, improve its economic resilience, and advance Gaza’s recovery. Palestinians must have a decisive role in shaping their own future, and we are here to help ensure that.
Dubravka Šuica, EU Commissioner for the Mediterranean
Source – EU Commission
Press remarks by EU Commissioner Šuica on the Palestine Donor Group
20 November 2025
“Check against delivery”
Dear Prime Minister Mustafa,
Dear all,
The EU has been, and remains, a strong partner of the Palestinian people – politically and financially. Since 1994, we have provided almost €30 billion in assistance.
This year, we adopted a comprehensive three-year programme worth €1.6 billion.
Our financial support is linked to the Palestinian Authority Reform Agenda, which they committed to implement.
We see these reforms as a prerequisite for a viable Two-State solution, our ultimate goal.
Today marked a very important moment: the inaugural meeting of the Palestine Donor Group, a platform bringing together key international partners to support a reformed and well-functioning Palestinian Authority.
Our aim is to strengthen governance, build a more resilient economy, stabilise finances, improve services for the population, and create conditions for future effective governance across all territories.
Gaza’s recovery was also a central part of our discussions.
The EU firmly believes that Palestinians must have a real and decisive role in shaping their own future, including governance across the West Bank, East Jerusalem, and Gaza.
The Donor Group exists to support and monitor implementation of the Reform Agenda, ensuring accountability and progress.
The meeting was a success, bringing together over 60 delegations from around the world, demonstrating both solidarity and concrete support.
Joining forces, we demonstrated the essential role of collective action in addressing the complex challenges facing the Palestinian Authority.
Our message was clear – Mr. Prime Minister you are not alone in this endeavor.
We recognise the progress achieved on key reforms under exceptional circumstances.
We support your commitment to the Reform Agenda, in particular on fiscal, economic, and governance reforms.
The social protection and education reforms remain crucial. More work remains to be done in these areas.
It is essential that we remain firmly committed to this path with determination and in full transparency.
Together with the Member States, the EU is also supporting measures against corruption, as well as for the private sector development, and the provision of basic services in energy, water and digitalisation.
I would like to say a word on how the EU delivers our support.
We channel our financial contributions to the Palestinian Authority through the PEGASE mechanism [to support essential expenditures, including salaries of public workers like teachers and healthcare staff and pensions for civil servants].
PEGASE is a secure, reliable, and well-tested instrument, supported by rigorous control, verification mechanisms, and stringent safeguards.
Today, we had an important moment to showcase and support this system.
I am pleased to announce that today, together with Germany, Luxembourg, Slovenia, and Spain, we signed more than €82 million of new contribution agreements in additional financial support from our Member States channelled through PEGASE. The total amount pledged this year is of more than €88 million, including earlier contributions from Finland, Ireland Italy and Spain.
This mechanism remains open to all partners wishing to join.
As said, our EU support is substantial, but we need further international support to stabilise the Palestinian fiscal situation.
I commend the recent emergency support initiatives and additional contributions from Member States and reiterate our call to all donors to step up.
Israel has of course a significant role to play in this. I believe they also want to see a reformed Palestinian Authority.
We will continue engage with them and urge for a release of the tax revenues, along with the renewal of corresponding banking relationships.
Let me now turn to Gaza. Any credible recovery and future reconstruction efforts must be Palestinian-owned.
The ceasefire is holding, but remains fragile, and urgent humanitarian aid still needs to reach those in need.
We welcome the US-led UN Security Council Resolution on the Gaza Peace Plan as a major step in advancing peace.
The Resolution also mentions the need for reformed Palestinian Authority – and the Palestine Donor Group contributes to this goal.
I reiterate that our broader objective remains a Two-State solution.
Together with efforts led by the United States, Egypt, Qatar, Türkiye, and the wider international community, we can make this vision a lasting reality.
The EU is ready to engage also in the next phase – on further reforms, humanitarian aid, and recovery, and as part of Team Europe alongside our Member States and key regional and international partners.
Our efforts are focused on ensuring that recovery and reconstruction fully respect international law with Palestinian participation in governance across all territories.
In these extremely difficult times, we must keep hope alive. The vision of peace and security in the Middle East remains essential.
Today, we demonstrated that this commitment is alive.
Let us continue to join forces for a future where Israelis and Palestinians can live side by side in peace and security.
Thank you!
Source – EU Commission