The European Union coordinated efforts to raise 900 million euros, or $1 billion, in pledges for Gaza's rebuilding after two years of Israeli bombardment left the Palestinian enclave in ruins, but the money can't move until a stalled ceasefire resumes, a senior EU official said Monday.
European Commissioner for the Mediterranean Dubravka Suica announced the fund after a meeting in Brussels of the Palestine Donors Group, which includes EU and Middle East nations along with international organizations and financial institutions. The pledges represent a fraction of what's needed. The United Nations, World Bank and EU estimate that reconstruction will cost $70 billion for the Palestinian territory of over 2 million people.
The Scale of Destruction
Few places in Gaza have been left unscathed. The U.N. has said Gaza has more than 60 million tons of rubble, enough to fill nearly 3,000 container ships. It'll take over seven years just to clear the debris, with additional time needed for demining. Suica said the ceasefire between Israel and the Hamas militant group that took effect in October remains fragile and the situation on the ground for civilians isn't getting better. She said the money will move through trusted partners but didn't give details on how much will actually be delivered or when reconstruction can begin.
The meeting brought together Nickolay Mladenov, the head of the Board of Peace set up by U.S. President Donald Trump to lead Gaza's reconstruction; Trump's son-in-law, Jared Kushner; Ali Shaath, the head of the new Palestinian committee meant to administer Gaza's daily affairs but still unable to enter; and Palestinian Authority Prime Minister Mohammad Mustafa. Mladenov has made clear that the next steps in implementing the ceasefire are stalled over the difficult issue of disarming Hamas militants in Gaza.
Palestinian Authority Seeks Role
Mustafa called for "a resilient, sovereign, contiguous and viable Palestinian state" — something Israel's current government has opposed. "We are investing not only in the Palestinian future but also in the regional stability, shared security and just and lasting peace for everyone together," he said. The Palestinian Authority seeks a role in Gaza's reconstruction, but the U.S. 20-point plan only makes a reference to the possibility of a future Palestinian state.
EU Debates Settler Violence Response
Separately, top diplomats from the 27-nation EU debated how to respond to increased Israeli settler violence in the occupied West Bank. The bloc's executive, the European Commission, has tabled options including cutting off trade with Israeli settlements in the territory. Nations like Ireland and Spain are calling for forceful action. The Czech Republic, Germany and others alongside the commission are more cautious, seeking to apply incremental pressure. Some nations have signaled they would veto sanctions.
Bulgarian Foreign Minister Velislava Petrova-Chamova said, "Do sanctions have a meaningful impact or not? What role could they play as a political message, and would this be escalatory in a wrong direction?" The EU's foreign policy chief, Kaja Kallas, said the European Council's legal service had found that severing trade ties with Israeli settlements in the West Bank — not technically sanctions — would require a majority vote and not total unanimity from bloc members.
Luxembourg's Foreign Minister Xavier Bettel said a clear majority in the EU agrees on severing commercial ties with the settlements. He dismissed arguments that tough action would boost Israeli Prime Minister Benjamin Netanyahu's chances in an election in October: "I hope that now it's time for decisions."
Why This Matters:
The $1 billion pledge highlights the international community's recognition of Gaza's humanitarian crisis, but it represents just 1.4 percent of the estimated $70 billion needed for full reconstruction. With the ceasefire stalled and civilians facing worsening conditions, the gap between pledged aid and actual delivery underscores the urgency of diplomatic progress. The debate over Israeli settlement trade reflects growing European frustration with settler violence in the West Bank, where incremental measures have failed to protect Palestinian communities. Whether the EU moves beyond cautious incrementalism to decisive action on settlements will test the bloc's commitment to international law and human rights protections in occupied territories. For more than 2 million Palestinians in Gaza, the timeline for clearing rubble alone — over seven years — means a generation will grow up amid destruction unless reconstruction begins soon.