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The European Commission has proposed a suspension of part of the free trade agreement with Israel and imposed sanctions targeted in response to the deeper humanitarian crisis in Gaza, increasing political tensions throughout the European Union.
Ursula von der Leyen, President of the European Commission, has drifted the idea of stopping elements related to trade from the European Union Association agreement last week, because the block faced increased public and political pressure to further respond to the ongoing Israeli military campaign.
Apart from the proposal, the commission has not received most of the support from the EU member countries, mainly because of the resistance from Germany – during one of the most stable Israeli allys.
Under the new proposal, Israel can lose preference access to the European market, because the EU will conclude the tariffs of certain Israeli goods. Other steps include suspending reciprocal benefits such as the right of public contract supply and protection for intellectual property.
The EU is also trying to sanction two right-wing Israeli Ministers, Itamar Ben-Gvir and Bezalel Smotrich, in addition to 10 senior Hamas leaders. Both Ben-Gvir and Smotrich have been widely criticized for their hardliners and support for hard settlement activities on the western edge that is occupied.
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The push occurred when Israel intensified its military attack in Gaza City, a campaign that had claimed lives of nearly 65,000 Palestinians since Hamas launched the attack on October 7, 2023, which killed more than 1,200 people in Israel and caused a kidnapping of 250 Shere.
Commissioner of the European Union Trading, Maroš šefčovič, defended the proposal, stating that it was a response needed to the deteriorating situation in the field.
“We regret having to take this step. However, we believe it is right and proportional considering the ongoing humanitarian crisis in Gaza,” he said.
Israeli Foreign Minister Gideon Sa’ar quickly condemned the commission’s steps, taking to X (previously Twitter) to express his anger. The proposal, he said, “morally and politically distorted, and it is hoped that they will not be adopted, as has happened so far.”
Despite the strong language of Brussels, internal divisions in the EU remain the main obstacle. Even past efforts to stop the EU research funds to Israeli institutions have failed to get enough appeal among member countries.
The Head of the European Union Foreign Policy Kaja Kallas acknowledged these challenges during the comments on Wednesday.
“Even though we see that public opinion in member countries is really shifting because of suffering in Gaza … at the political level … I think there are many political lines in places where they have so far,” he said.
Every suspension of trade benefits or research funds will require a weighted majority – support from at least 15 of the 27 EU countries, representing a minimum of 65% of the block population. Without the support of main players like Germany or Italy, the proposal could not move forward.
When humanitarian victims in Gaza grow, the EU now faces a critical test whether he can translate public dissatisfaction that grows into a united political attitude – and whether he is willing to use his economic leverage to influence one of his main international partners.
