The cost of rebuilding Gaza could reach $71 billion, the European Union’s top diplomat said Monday. Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, said the estimate was developed over months of consultations with the World Bank and the United Nations.

“I often hear accusations of double standards,” Kallas said after meeting Palestinian Authority Prime Minister Mohammed Mustafa. “Let me get this straight: Europe is the biggest supporter of the Palestinian people.”

She pointed to the EU’s longstanding role as the largest donor to the Palestinians and a key backer of the Palestinian Authority, including support for governance, policing and border management.

The reconstruction estimate comes as EU member states prepare to debate whether to increase pressure on Israel through potential trade measures. Kallas confirmed that a proposal led by Ireland, Spain and Slovenia to review the EU-Israel Association Agreement will be discussed at a meeting of foreign ministers in Luxembourg.

The agreement, which governs trade and broader relations between the EU and Israel, has come under scrutiny amid concerns over settler violence in the West Bank, Israel’s military actions in Lebanon and legislation in the Israeli Knesset related to the death penalty for certain Palestinian offenders.

Spain’s prime minister, Pedro Sanchez, has gone further, calling for a full suspension of the agreement — a move that would require unanimous approval from EU member states. Kallas cautioned that while suspension is on the table, other measures requiring only a qualified majority could be pursued more quickly.

A previous push by Ireland and Spain in 2024 to review the agreement failed to secure consensus, facing opposition from countries including Germany, Hungary and the Czech Republic. A later Dutch-led review concluded that Israel was “likely” in breach of the agreement’s human rights clause, though member states stopped short of recommending suspension after Israel pledged to expand humanitarian access to Gaza.

Tensions over the issue have spilled into public exchanges. Israel’s Foreign Minister, Gideon Saar, criticized Spain’s position, accusing Madrid of hypocrisy in its foreign policy ties.

At the same time, the EU is distancing itself from a U.S.-backed proposal for post-war governance in Gaza. Kallas said the bloc would not participate in President Donald Trump’s so-called “Board of Peace,” arguing it diverges from a UN-backed framework that envisions a temporary arrangement with a central role for the Palestinian Authority.

Instead, EU officials are emphasizing parallel efforts, including a broader international initiative to advance a two-state solution. Kallas stressed that any long-term governance structure must be led by Palestinians themselves.

“For us, the role of Palestinians in building up a Palestinian state is the most important,” she said. “It has to be Palestinian-led, and Palestinian-owned.”

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