EU foreign policy chief Kaja Kallas announced the initiative on social media, stating, “We are stepping up our support to the Palestinian people. €1.6 billion until 2027 will help stabilise the West Bank and Gaza.”
The multi-year funding package, set to be disbursed through 2027, aims to provide critical humanitarian assistance, strengthen institutions, and promote socio-economic development in both the West Bank and Gaza Strip. The EU has been one of the largest donors to the Palestinian Authority and various humanitarian programs in the region.
This fresh commitment comes amid ongoing instability in Gaza, where a prolonged humanitarian crisis has been exacerbated by repeated cycles of conflict, restrictions on movement, and limited access to essential services. In the West Bank, rising tensions and political uncertainty have also placed significant strain on public institutions and basic services.
According to EU officials, the funding will support vital sectors such as healthcare, education, food security, water and sanitation, and governance. A portion of the funds is also expected to go toward emergency aid for civilians affected by recent escalations in violence.
“The goal is not only to address urgent needs but also to help build long-term resilience in Palestinian communities,” an EU spokesperson said.
The announcement reflects growing international concern over the deteriorating humanitarian situation in the region. Human rights organizations and international agencies have repeatedly called for increased aid and diplomatic efforts to prevent further instability.
The EU continues to advocate for a two-state solution and supports efforts to restart peace negotiations between Israel and the Palestinians. Kallas reiterated the bloc’s position, saying that promoting peace and human dignity in the region remains one of the EU’s core foreign policy priorities.
The funding package is expected to be channeled through EU institutions, UN agencies, and trusted international NGOs working on the ground.
As the situation in Gaza remains volatile, with widespread displacement and damage to infrastructure, the EU’s renewed support is seen as a critical lifeline for millions of Palestinians facing an uncertain future.