European Union Launches $1 Billion "Team Gaza Initiative" for War Recovery

The European Union officially launched the "Team Gaza Initiative" on Monday, bringing together €883.6 million (about $1 billion) in financial contributions to support early recovery efforts in the war-battered Palestinian enclave.

The initiative was unveiled at the second ministerial meeting of the Palestine Donor Group, hosted by the European Commission in Brussels and co-chaired by EU Commissioner for the Mediterranean Dubravka Šuica and Palestinian Authority Prime Minister Mohammad Mustafa. The meeting brought together representatives from 65 delegations, including EU member states, partner countries, international organizations and financial institutions.

What the Funding Will Support

The Team Gaza Initiative brings together contributions from the European Commission, the European Investment Bank, the World Bank, and a coalition of governments including Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden and Belgium.

According to the European Commission, the funding will go toward restoring basic services for civilians, including water and sanitation infrastructure, debris and solid waste removal, health services, energy systems, and agriculture and food security. "Through the Team Gaza Initiative we will launch concrete projects that will restore essential services and improve people's daily lives," Šuica said, adding that the goal was to "help build hope, resilience and a better future for the Palestinian people."

The EU said the coordination effort aligns with the Gaza Peace Plan and UN Security Council Resolution 2803, and is intended to complement rather than duplicate other international recovery efforts. Separately, the EU and several European countries signed €41.7 million in new contribution agreements through the PEGASE mechanism, which channels assistance to the Palestinian Authority under transparency and oversight standards.

US Involvement and Political Context

White House adviser Jared Kushner, son-in-law of President Donald Trump and a member of the Board of Peace's executive board, joined the meeting by telephone, underscoring coordination between Brussels and Washington on Gaza policy. The meeting also marked the first attendance of Nikolay Mladenov, High Representative of the Board of Peace, and Ali Shaath, head of the National Committee for the Administration of Gaza.

European Commission President Ursula von der Leyen called the turnout a success, noting the participation of 65 countries and institutions. UK Foreign Secretary Yvette Cooper struck a more urgent tone, saying that while Palestinians need to rebuild their lives and communities, "the scale of destruction is devastating, and the pace of support despite all the promises made in the peace plan is still shockingly slow." She added that continuing Israeli restrictions on humanitarian aid, shelter and healthcare support remain "deeply destructive." The UK separately pledged £10 million ($13.4 million) to the UN Horizon Fund, which supports a Palestinian-led, UN-coordinated approach to early recovery.

A Fraction of What's Needed

Gaza remains in ruins more than two and a half years after the conflict was triggered by Hamas's October 2023 attack on Israel. A fragile ceasefire has held since last October, but the United Nations has estimated the cost of rebuilding Gaza at around $70 billion, meaning the new fund covers only a small fraction of the total need. The European Commission did not provide a breakdown of how much each partner is contributing to the initiative.

Israel's military campaign displaced nearly the entire population of roughly 2 million Gazans, most of whom now live in tents or damaged buildings across a reduced strip of territory governed by Hamas. Israeli troops continue to control an estimated 70% of Gaza, patrolling what Prime Minister Benjamin Netanyahu has described as a buffer zone intended to deter further Hamas attacks.