The European Commission has laid out a plan to pressure Israel to end its war on Gaza, including economic measures and sanctions against two Israeli ministers.
On Wednesday, the EU Foreign Policy Chief, Kaja Kallas, urged the EU member states to support a proposal calling for the suspension of certain trade-related provisions of the Association Agreement between the EU and Israel, which give Israeli imports preferential access to the EU market.
Sanctions on Israel
Moreover, the proposal includes imposing sanctions on two far-right Israeli ministers, National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, in addition to violent Israeli settlers and 10 Hamas leaders.
The European Commission also said it was putting on hold its bilateral financial support to the Israeli government, which would impact future yearly allocations between 2025 and 2027, as well as ongoing institutional cooperation projects with Israel and projects funded under the Regional EU-Israel cooperation facility.
Gaza War
The proposal followed a review of Israel’s compliance with Article 2 of the Association Agreement, which found Israel in breach of its human rights obligations.
This includes the rapidly deteriorating humanitarian situation in Gaza, the blockade of humanitarian aid, the expansion of military operations, and the Israeli authorities’ decision to advance the E1 settlement plan in the occupied West Bank, further undermining the two-state solution.
Israel’s war on Gaza has killed over 65,000 Palestinians, according to Gaza’s Health Ministry. The Israeli military launched a new ground incursion into Gaza City, the enclave’s largest urban hub, in a major escalation in the nearly two-year war.
“Today we are presenting our proposals to the Council to suspend trade concessions with Israel and to place sanctions on extremist ministers of the Israeli government and on violent settlers. The horrific events taking place in Gaza on a daily basis must stop,” the Commission said.
“There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas,” it added.
EU-Israel Trade Ties
The EU is Israel’s largest trading partner, accounting for 32% of Israel’s total trade in goods in 2024. The total trade in goods between the bloc and Israel reached €42.6 billion in 2024.
The suspension of the trade agreement will affect exports valued at around €5.8 billion, leading to duties amounting to €227 million a year, Reuters reported citing a senior EU Commission official.
Approving the new measures – first proposed by the Commission President, Ursula von der Leyen, last week – will not be an easy task, as it requires the support of at least 15 of the 27 EU member states, representing 65% of the population.
EU diplomats believe the measures are unlikely to pass, especially given Germany’s reluctance to impose penalties on Israel.
