The European Union has pledged 900 million euros, or $1 billion, for Gaza’s rebuilding, a sum dwarfed by the estimated $70 billion needed to reconstruct the Palestinian enclave after two years of Israeli bombardment. This initial pledge represents a mere fraction of the total cost, leaving over 2 million people in a territory largely in ruins.
European Commissioner for the Mediterranean Dubravka Suica announced the fund after a meeting in Brussels of the Palestine Donors Group. This group includes EU and Middle East nations, along with international organizations and financial institutions. Suica stated the money would move through "trusted partners" but offered no further details on its delivery or the timeline for reconstruction. The United Nations, World Bank, and EU estimate the destruction will take over seven years to clear, with an additional period for demining, given the more than 60 million tons of rubble.
The ceasefire between Israel and the Hamas militant group, which took effect less than one year ago in October, remains stalled. Suica acknowledged the ceasefire's fragility and that the situation for civilians on the ground is not getting better.
The State's Role in Managing Crisis
The meeting in Brussels also included Nickolay Mladenov, head of the Board of Peace established by U.S. President Donald Trump to lead Gaza's reconstruction, and Trump's son-in-law, Jared Kushner. Mladenov made it clear that implementing the ceasefire is stalled over the "difficult issue of disarming Hamas militants in Gaza." This focus on disarming resistance groups, rather than immediate humanitarian relief, reveals the priorities of imperial powers.
Palestinian Authority Prime Minister Mohammad Mustafa called for "a resilient, sovereign, contiguous and viable Palestinian state," a vision opposed by Israel's current government. The U.S. 20-point plan for reconstruction only makes a vague reference to the "possibility of a future Palestinian state," further highlighting the limitations imposed on Palestinian self-determination. The Palestinian Authority seeks a role in Gaza’s reconstruction, but its committee meant to administer daily affairs is "still unable to enter" the territory.
Profits Over People
Separately, top diplomats from the 27-nation EU debated responses to increased Israeli settler violence in the occupied West Bank. The European Commission proposed options, including cutting off trade with Israeli settlements in the territory. This discussion reveals the economic ties that underpin the political inaction.
Nations like Ireland and Spain advocate for forceful action against the settlements. However, the Czech Republic, Germany, and others, alongside the commission, prefer "incremental pressure." Some member states have already signaled they would veto any sanctions, prioritizing economic relationships over human rights.
Bulgarian Foreign Minister Velislava Petrova-Chamova questioned the "meaningful impact" of sanctions and whether they would be "escalatory in a wrong direction." Luxembourg’s Foreign Minister Xavier Bettel stated 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 upcoming election later this year in October, asserting, "I hope that now it’s time for decisions." The EU’s foreign policy chief, Kaja Kallas, confirmed that severing trade ties with settlements, distinct from sanctions, would require a majority vote, not unanimity. This internal struggle within the EU demonstrates the system's inherent resistance to challenging established economic interests.