Palestine Donor Group: EU leads international efforts for strong and viable Palestinian governance

This article is brought to you in association with the European Commission.

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.