EU Launches $1 Billion Gaza Recovery Fund Amid Hamas Conflict

The European Union launched the Team Gaza Initiative in Brussels on July 13, 2026, coordinating approximately €883.6 million ($1 billion) in pledges for early recovery in the Gaza Strip. Announced by Commissioner Dubravka Šuica during a Palestine Donor Group meeting, the fund targets the restoration of water, sanitation, healthcare, and energy systems. The United Kingdom joined the initiative with an additional £10 million pledge, though UK Foreign Secretary Yvette Cooper described Israeli restrictions on aid as deeply destructive.

Despite the funding, officials noted that the ceasefire remains fragile and the delivery of aid is uncertain because the second phase of the peace plan is stalled over the disarmament of Hamas. This tension was compounded by reports from UN Deputy Special Coordinator Ramiz Alakbarov, who accused Hamas of obstructing humanitarian operations, citing a violent incident at a World Food Programme warehouse in Jabalia. The Coordinator of Government Activities in the Territories further alleged that Hamas is cynically exploiting humanitarian space.

Simultaneously, EU diplomats in Brussels debated severing trade ties with Israeli settlements in the West Bank following increased settler violence. Foreign Policy Chief Kaja Kallas clarified that such a move would require a majority vote rather than total unanimity. While the current aid package is substantial, the UN, World Bank, and EU estimate the total cost of rebuilding Gaza at $70 billion.