Cyprus joins EU donors in signing €41.7 million aid agreements for the Palestinian Authority

Cyprus is among the EU member states that signed new contribution agreements worth €41.7 million to provide additional funding to the Palestinian Authority through the EU's PEGASE mechanism. The agreements were concluded at the second meeting of the Donor Group for Palestine in Brussels, co‑chaired by EU Commissioner for the Mediterranean Dubravka Šuica and Palestinian Prime Minister Mohammad Mustafa.

The meeting also launched the "Team Gaza" initiative, which gathers €883.6 million from a coalition of European and partner countries to finance rapid‑recovery projects in Gaza, including water and sewage infrastructure, waste removal, and restoration of health, energy, agriculture and food services. Cyprus signed both the PEGASE contribution and the broader Team Gaza pledge alongside countries such as Spain, Denmark, the United Kingdom, Germany, Norway, Finland, Italy, the Netherlands, France, Japan, Switzerland, Sweden and Belgium.

The European Commission noted that the new commitments add to the €310 million already earmarked for 2026‑2027 under PEGASE and complement ongoing reforms by the Palestinian Authority in public finance, governance, business environment, digital services and social protection.