Brussels: Prime Minister Mohammad Mustafa co-chaired the second ministerial meeting of the Palestine Donors Group in Brussels alongside European Commissioner for the Mediterranean Dubravka Luica. The meeting, attended by around 65 representatives of donor countries, international institutions, and development partners, focused on supporting the Palestinian government and addressing early recovery and reconstruction efforts in the Gaza Strip.
According to Palestine News and Information Agency - WAFA, Mustafa addressed the severe impact of the war on Gaza, highlighting the unprecedented destruction and humanitarian suffering. He emphasized the significant political, economic, social, and security challenges faced by the region. Mustafa outlined the continuous issues in the occupied West Bank, including East Jerusalem, which faces accelerating annexation, colonial expansion, and movement restrictions.
The Palestinian economy has contracted by 30% since October 2023, with unemployment reaching 50% and over 500,000 job losses, Mustafa reported. The fiscal deficit has reached unprecedented levels due to Israel's withholding of Palestinian clearance revenues and restrictions on the financial system. Despite these challenges, Mustafa underscored the Palestinian government's commitment to reform, stability, and institution-building.
Mustafa introduced the government's 18-month strategy focused on strengthening resilience and restoring unity. This strategy emphasizes five pillars: supporting vulnerable communities, reinforcing state institutions, supporting Gaza's recovery, promoting economic self-reliance, and advancing political efforts for international recognition of the State of Palestine.
The Prime Minister called for stronger political support, emergency budget assistance, and a coordinated international effort for Gaza's recovery and reconstruction. He stressed that success requires the political and economic conditions necessary for implementation and urged the international community to address Israel's repeated violations of its obligations under the Paris Protocol.
Mustafa also discussed progress on the government's reform agenda, including fiscal discipline, debt management, and social protection system overhaul. He noted education reforms and the successful implementation of President Mahmoud Abbas's political reform program, including municipal elections and the upcoming nationwide legislative elections.
Expressing gratitude to Commissioner Luica and the European Union, Mustafa thanked international partners for their continued support, reflecting solidarity with the Palestinian people and commitment to the two-state solution. On the sidelines of the meeting, new contribution agreements worth £41.7 million were signed under the PEGASE program, providing additional financial support for Palestine.