The European Commission is proposing a multiannual Comprehensive Support Programme worth up to €1.6 billion to foster Palestinian recovery and resilience. This was announced at the first ever High-Level Political Dialogue between the European Union and the Palestinian Authority. With this Programme, the EU demonstrates its unwavering support for the Palestinian people and its commitment to a lasting and sustainable peace based on the Two-State solution.

The Programme will run from 2025 to 2027 and is structured around three pillars:

1. Support to services for the Palestinian People

The EU will provide approximately €620 million in direct budgetary support to the Palestinian Authority (PA), representing an increase compared to previous years. These funds will help the PA address urgent needs within the public administration and ensure the continued delivery of essential services to the population.

Most of the support will focus on the Palestinian Authority's progress on key reforms in fiscal sustainability, democratic governance, private sector development and public infrastructure and services, thereby contributing to sustainable state-building across Palestinian territories. To ensure accountability and transparency, the EU will channel its financial assistance through the PEGASE mechanism, which provides strict controls and safeguards regarding the final recipients of EU funds.

2. Support to recovery and stabilization of the West Bank and in Gaza

Around €576 million in grants are proposed to support concrete projects on the ground to foster economic recovery and resilience in the West Bank, East Jerusalem and in Gaza, once the situation on the ground allows. Taking an integrated approach, the support will target sectors such as water, energy, and infrastructure.

As part of this pillar, the EU also proposes to allocate €82 million per year to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). This will ensure continued delivery of essential services to Palestine refugees in the occupied Palestinian territories and the wider region, reinforcing UNRWA’s crucial role as both a humanitarian and development actor.

3. The support for the private sector

As part of the Multiannual Comprehensive Programme for Palestine 2025-2027, the Commission will provide support loans up to €400 million through the European Investment Bank (EIB). This will assist the reconstruction and resilience of the Palestinian private sector, subject to approval of EIB's Governing Bodies.

Palestine Donor Platform

The European Commission will also establish a dedicated Palestine Donor Platform. This forum will enable the Palestinian Authority to present progress on the implementation of its Reform Agenda, ensuring full transparency in the execution of the Programme. In addition, the Platform will facilitate dialogue on key aspects of future engagement in Gaza and help coordinate international efforts for its recovery and reconstruction, once conditions on the ground permit.

The EU remains the largest provider of external assistance to the Palestinians, with a bilateral allocation of approximately €1.36 billion for the period 2021–2024. Of this amount, over €1.043 billion has already been committed.

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