European commission president Ursula von der Leyen on Monday announced that the European Union will establish a dedicated ‘Palestine donor group’ and create a special financial instrument for Gaza’s reconstruction, reiterating Europe’s commitment to a two-state solution.Speaking at the united nations general assembly in New York, von der Leyen said, “When the night is darkest we must hold fast to our compass. And our compass is a two-state solution.”

She emphasised that any future Palestinian state must be viable not only politically, but also economically. “Because any future Palestinian state must be viable also from an economic point of view. And we Europeans will set up a dedicated instrument for Gaza’s reconstruction. Gaza must be rebuilt,” she said.Von der Leyen stated that the EU has been a critical supporter of the Palestinian Authority since the beginning of the ongoing war.“Since the beginning of this war, Europe has been the lifeline of Palestinian Authority. But we must all do more and this is why we will set up a Palestine Donor Group,” she added.Calling for an end to violence, she stressed that peace is only possible through the creation of two states. “The only realistic peace plan is based on the two states, with a secure Israel, a viable Palestinian state and the scourge of Hamas removed,” von der Leyen said.Her comments come as many European nations’ recognised official Palestinian state, amid a renewed international focus on a long-term political solution to the Israel-Palestine conflict, as humanitarian conditions in Gaza continue to deteriorate.