EU proposes trade curbs and sanctions on Israeli ministers over Gaza war
European Commission seeks suspension of trade privileges and targeted sanctions, but measures face political hurdles and may not win member-state approval
The European Commission proposed on Thursday a package of measures that would suspend parts of the EU–Israel Association Agreement and impose sanctions on what it described as extremist members of the Israeli government, marking Brussels’ toughest public response so far to the war in Gaza.
Under the plan, trade-related provisions that give Israeli goods preferential access to European markets would be suspended, exposing billions of euros of exports to tariffs. The Commission said agricultural produce, notably dates and citrus fruit, would be among the products most affected. The measures also include targeted sanctions against unnamed "extremist ministers" in the Israeli government, steps aimed at "Hamas terrorists," and actions against "violent settlers and entities supporting the impunity going on in the West Bank," EU foreign policy chief Kaja Kallas told reporters after presenting the package to the European Council.
Despite the forceful language, the proposals face steep political obstacles. Suspension of trade preferences would require approval by a qualified majority of EU member states, while sanctions on individuals demand unanimity. Several key member states, including Germany and Italy, have expressed objections to tough measures, while Ireland and Spain have pushed for even stronger action. Kallas acknowledged the divisions, saying that "political lines are very much in the place where they have been so far." It was not immediately clear when the measures would be put to a vote by member states.
The Commission said the overall economic impact of ending tariff preferences would be limited. Trade Commissioner Maroš Šefčovič estimated the effect at about €227 million a year, a small fraction of bilateral commerce. The EU is Israel's largest trading partner, accounting for 32% of its trade in goods in 2024 — worth €42.6 billion. Officials noted that the only measure to take immediate effect is the suspension of bilateral support to the Israeli government; that suspension is largely symbolic, affecting €9.4 million of €14 million allocated for 2020–24 and does not require member-state approval.
Commissioners sought to draw distinctions between measures that would target the Israeli state and those aimed at individuals and nonstate actors. Mediterranean Commissioner Dubravka Šuica said funding for programmes addressing antisemitism and for civil society groups would be preserved. The Commission also framed the package as including measures against Hamas, not solely punitive steps against Israel.
The proposals have drawn sharp criticism from Israeli officials. Foreign Minister Gideon Saar described the Commission's plan as "morally and politically distorted" and warned on the social platform X that actions against Israel would harm Europe's own interests. Saar said any steps taken against Israel would be answered "in kind," without specifying what retaliatory measures might follow.
Analysts and diplomats said the measures' future hinges on negotiations among member states in the European Council, where divergent views on how to respond to the Gaza war have widened in recent weeks. Some capitals are reluctant to take steps that could imperil economic ties or complicate security cooperation with Israel, while others argue stronger penalties are necessary to signal disapproval of actions in Gaza and the West Bank.
Commission President Ursula von der Leyen had signalled the approach last week, and Thursday's package formalized the options for suspending trade-related clauses and for imposing targeted asset freezes and travel bans on named individuals. Legal and political hurdles remain, including the need for unanimity on sanctions and the procedural requirement of a qualified majority for trade measures.
If adopted, the steps would represent a significant escalation in EU policy toward Israel. For now, however, the combination of limited immediate economic effect and deep divisions among member states leaves prospects for adoption uncertain. Officials said the Commission would continue consultations with member capitals and that any final decisions would follow further deliberations in Brussels.