Brussels, April 15, 2025 — The European Union has pledged a significant €1.6 billion (approximately $1.8 billion) aid package to bolster the Palestinian Authority and support reconstruction and development across the West Bank, East Jerusalem, and war-ravaged Gaza.
Announced on Monday as Israel intensifies its military operations in Gaza, the multi-year package underscores the EU’s strategic vision for long-term Palestinian governance and economic recovery.
Breakdown of the Aid Package
- €650 million ($710 million) in direct budgetary support for the Palestinian Authority over two years. This portion is intended to improve financial sustainability, reinforce democratic institutions, and expand essential public services.
- €576 million ($653 million) in grants for humanitarian and development projects across the Palestinian territories.
- €82 million ($93 million) directed to UNRWA, the UN agency supporting Palestinian refugees.
- €400 million ($456 million) in low-interest loans aimed at revitalizing the private sector.
EU Stance: PA Central to Post-War Governance
Speaking after a meeting with Palestinian Prime Minister Mohammad Mustafa in Luxembourg, Dubravka Šuica, the EU Commissioner for Democracy and Demography, emphasized the importance of rebuilding governance structures in Gaza with the Palestinian Authority at the helm.
“A well-functioning and reformed Palestinian Authority must play a central role in the post-conflict governance of Gaza. This is our position,” said Šuica, adding that the funding reflects a commitment to a “sustainable future” for Palestinians through governance reform and economic resilience.
The EU, the world’s largest donor to the Palestinian territories, has framed the aid as both a humanitarian lifeline and a strategic investment in regional stability. The announcement follows ongoing international concerns over the humanitarian disaster unfolding in Gaza and the broader implications of the conflict.
Context
The aid announcement comes amid a severe escalation in Gaza, where Israeli military operations have resumed following the breakdown of a temporary ceasefire in March. According to local health officials, more than 50,900 Palestinians have been killed since the conflict began in October 2023, following a deadly Hamas attack on southern Israel.
Looking Ahead
The EU’s financial support is also viewed as part of broader diplomatic efforts to strengthen the Palestinian Authority’s capacity and legitimacy, positioning it as a potential administrator of post-conflict Gaza — a goal echoed by Western allies including the United States.
Sources:
- European Commission Press Office
- Associated Press reporting from Brussels and Luxembourg
- Statements from Commissioner Dubravka Šuica and Palestinian Prime Minister Mohammad Mustafa
- UNRWA funding reports and EU External Action Service briefings
