On November 20, 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.

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. 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.

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.