Press remarks by Commissioner Šuica on the Palestine Donor Group

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!