Rebuilding Gaza after nearly two years of devastating conflict will require more than $71 billion over the next decade, according to a major joint assessment released Monday by the European Union and the United Nations. The Gaza Rapid Damage and Needs Assessment (RDNA) describes a "catastrophic impact on human development" and calls for an immediate injection of $26.3 billion within the first 18 months alone to restore essential services, rebuild critical infrastructure and support economic recovery.
The scale of destruction documented in the report is staggering. Physical infrastructure damages are estimated at $35.2 billion, with economic and social losses reaching a further $22.7 billion. More than 371,000 housing units have been destroyed or damaged, over half of Gaza's hospitals are nonfunctional, and nearly all schools have been destroyed or damaged. The Israeli bombardment has generated more than 61 million tonnes of rubble, leaving entire communities buried. Gaza's economy has contracted by 84 percent, 1.9 million people — more than 60 percent of the population — have been displaced, often multiple times, and the conflict has set back human development in the territory by an estimated 77 years. The hardest-hit sectors include housing, health, education, commerce and agriculture.
The report was released as more than 60 nations gathered in Brussels for a Palestinian peace conference hosted by the EU, which has been seeking a stronger role in Middle East diplomacy after being largely sidelined — notably excluded from the ceasefire negotiations that took effect in October following the Hamas-led attacks of October 7, 2023, and Israel's subsequent military campaign. Gaza's Ministry of Health reports more than 72,500 people killed during the conflict, with at least 777 deaths occurring since the ceasefire took effect. Gaza's Government Media Office says Israel has committed over 2,400 ceasefire violations.
Both the EU and UN specified that reconstruction must be "Palestinian-led" and support a transition of governance to the Palestinian Authority — a position that implicitly pushes back against suggestions floated by US President Donald Trump that Gaza could be cleared and redeveloped as a Mediterranean resort. Palestinian Prime Minister Mohamed Mustafa, speaking in Brussels, called for unified governance of Gaza under "one state, one government, one law," and urged the gradual disarmament of all armed groups alongside full Israeli withdrawal.
The Brussels conference also highlighted shifting dynamics within the EU itself. Hungary's outgoing Prime Minister Viktor Orbán had repeatedly vetoed EU actions critical of Israel, but his recent election defeat has opened the door to new measures. EU foreign policy chief Kaja Kallas indicated that targeted sanctions on violent Israeli settlers in the occupied West Bank — long blocked by Orbán — could now move forward. Spain is pushing further, calling for suspension of the EU's Association Agreement with Israel, though that step faces resistance from Germany and Austria. Whether the EU can translate its economic weight as Israel's largest trading partner into meaningful diplomatic leverage remains a central question as it seeks to shape the path toward a lasting settlement.