EU Foreign Policy Chief Kaja Kallas announced the bloc’s unified support for a two-state solution to the Israeli-Palestinian conflict, following a high-level EU-Palestinian dialogue in Luxembourg.

Kallas condemned the total aid blockade to Gaza and urged Israel to restore humanitarian access. She also voiced concern over Israeli settlement expansion and West Bank displacements, calling for a halt and warning of further EU sanctions on extremist settlers.

Palestinian Prime Minister Mohammed Mustafa described the war as an “attempt to destroy a people and a cause,” urging Israel’s accountability for civilian deaths and legal violations.

The EU unveiled a €1.6 billion aid package: €620 million for Palestinian Authority reforms, €576 million for economic recovery, €82 million for UNRWA, and up to €400 million in loans to support Palestine’s private sector.