EU, Partners Launch $1 Billion Gaza Recovery Initiative

Gaza’s civilian infrastructure had suffered extensive destruction during the Israel-Hamas war.

A boy walks through the rubble of a building destroyed in Israeli bombardment following an evacuation order at the Maghazi refugee camp in the central Gaza Strip on June 12, 2026. Eyad Baba/AFP via Getty Images

The European Union and its partners have launched a 883.6 million euro ($1 billion) package of recovery projects for Gaza, expanding international efforts to restore basic services in the enclave after months of war.

The Team Gaza Initiative, announced on July 13 in Brussels, represents one of the largest European-led reconstruction commitments since a U.S.-brokered ceasefire between Israel and terrorist group Hamas took effect in October 2025.

The funding is meant to support projects aimed at restoring water and sanitation networks, clearing debris, improving solid-waste management, rebuilding damaged health facilities, restoring electricity infrastructure, and reviving agricultural and food production systems across Gaza.

Participating governments include Spain, Denmark, the UK, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden, and Belgium, as well as the European Investment Bank and the World Bank.

The European Commission said that Australia and Canada are also expected to join the initiative.

EU foreign policy chief Kaja Kallas said sustained international support would remain essential for both reconstruction and political stabilization.

“The many countries gathered in Brussels today show that this support is there,” she added.

The initiative complements broader reconstruction planning under the Board of Peace, which was established under the U.S.-backed Gaza peace plan to oversee longer-term rebuilding and governance initiatives.

The high representative of the Board of Peace, Nikolay Mladenov, and the head of the National Committee for the Administration of Gaza, Ali Shaath, both attended the July 13 meeting in Brussels.

At the board’s inaugural meeting in February, the United States pledged $10 billion toward Gaza’s reconstruction, while Kazakhstan, Azerbaijan, the United Arab Emirates, Morocco, Bahrain, Qatar, Saudi Arabia, Uzbekistan, and Kuwait collectively committed more than $7 billion.

U.S. President Donald Trump holds a signing ceremony for the “Board of Peace” at the World Economic Forum (WEF) in Davos, Switzerland, on Jan. 22, 2026. Chip Somodevilla/Getty Images

Together, those commitments amount to about $17 billion, a substantial increase in available reconstruction funding.

The United Nations and the World Bank estimated in October 2025 that the enclave would require $70 billion to rebuild homes, hospitals, roads, and public infrastructure.

Political Transition, Humanitarian Needs

The EU’s reconstruction effort comes as Israel and Hamas continue working to implement the next stages of the Washington-backed Gaza peace plan. Under the deal, Hamas is expected to transfer civilian governing responsibilities to the National Committee for the Administration of Gaza, a body made up of U.S.-backed Palestinian technocrats.

Last week, Hamas said it had dissolved its Government Emergency Committee to support the peace plan and transfer civilian administration to the National Committee for the Administration of Gaza, a body composed of Palestinian technocrats backed by the United States and regional partners.

The Board of Peace said on July 6 that it had taken note of Hamas’s announcement but would judge the move by actions rather than words. The same day, Israeli Foreign Minister Gideon Sa'ar said Israel did not believe Hamas intended to relinquish military control of Gaza.

Boys transport a cart loaded with water containers past tents and rubble at a camp for people displaced by war in the Sheikh Radwan neighbourhood of Gaza City on July 6, 2026. Omar Al-qattaa /AFP via Getty Images

Despite growing international financial commitments, humanitarian conditions in Gaza remain severe.

The Hamas-run Gaza Health Ministry said on July 11 that about 70 percent of its ambulance and medical transport fleet was out of service because of direct damage, mechanical failures, and shortages of spare parts.

The ministry warned that continued restrictions on importing tires and replacement parts could bring medical transportation to a halt, making it increasingly difficult for patients and health workers to reach hospitals.

It also said buses contracted to transport medical personnel were operating under deteriorating mechanical conditions after routine maintenance was suspended due to the unavailability of replacement parts.

Two days later, on July 13, the ministry reported that 1,108 people had been killed and 3,578 injured since the October 2025 ceasefire.

It said that, since the start of the war on Oct. 7, 2023, cumulative casualties had reached 73,231 dead and 173,686 wounded. The Epoch Times has not independently verified the ministry figures.

A person views a collage as relatives and supporters of Israeli hostages, taken during the Oct. 7, 2023, Hamas attack, attend the Nova memorial near Kibbutz Reim in southern Israel, the site of the Nova music festival attacked by terrorists, during the first anniversary of the attacks on Oct. 7, 2024. John Wessels/AFP via Getty Images

The war began after Hamas attacked southern Israel on Oct. 7, 2023, killing about 1,200 people and taking roughly 250 hostages, according to Israeli authorities.

Israel’s military campaign in Gaza has since caused widespread destruction across the enclave, displaced most of its population, and severely damaged housing, hospitals, schools, and public infrastructure.