Nicosia, Cyprus. Cyprus joined 10 other European countries and the European Union in pledging €41.7 million in new contribution agreements for the Palestinian Authority through the Pegase mechanism.
The funding commitment coincided with the launch of the Team Gaza initiative, which aims to disburse nearly €900 million for early recovery efforts benefiting civilians in Gaza.
Pegase funding mechanism
The funds will be channelled through Pegase, the European Union mechanism established in 2008 to provide financial support to the Palestinian people.
Cyprus joined Belgium, Denmark, France, Greece, Ireland, Italy, the Netherlands, Portugal, Spain and Switzerland in Monday’s agreement.
The European Commission said the contributions will be directed to the Palestinian Authority alongside €310 million committed by the Commission for this year and next year.
Since its creation, Pegase has provided €3.8 billion to the Palestinian Authority, according to the Commission. It said the mechanism applies high standards of control, reduces transaction costs and increases the transparency and effectiveness of international contributions.
Team Gaza initiative
The pledges were announced alongside the launch of the Team Gaza initiative, led by European Mediterranean Commissioner Dubravka Suica. Foreign Minister Constantinos Kombos attended the launch in his capacity as the foreign minister of an EU member state.
The Commission said the initiative will support early recovery actions across various sectors for civilians in Gaza through almost €900 million in financial contributions.
The initiative was launched by the European Commission with Belgium, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom, as well as the European Investment Bank and the World Bank.
Australia and Canada have expressed interest in joining, the Commission said.
Gaza reconstruction needs
The initiative is based on a rapid damage and needs assessment for Gaza released by the European Union, the United Nations and the World Bank in April.
The assessment estimated that Gaza’s reconstruction will require US$71.4 billion (€62.6 billion) over the next decade, including US$26.3 billion (€23.1 billion) needed by the end of next year.
