The European Commission has proposed suspending certain trade relations with Israel after reviewing the country’s compliance with the EU-Israel Association Agreement. Bilateral support for Israel has also been suspended, excluding aid for civil society and the World Holocaust Remembrance Centre, Yad Vashem.
The Commission’s sanctions proposal targets Hamas, ‘extremist’ Israeli ministers, and violent settlers. “The horrific events taking place in Gaza on a daily basis must stop,” said EC President Ursula von der Leyen.
This move comes shortly after an independent UN commission officially confirmed that Israel has been committing genocide in Gaza since October 7, 2023. The acknowledgement strengthens international recognition of Palestinian claims and counters genocide denial globally.
The EU stated that Israel has breached Article 2 of the Association Agreement, which requires both parties to uphold essential human rights and democratic principles. The Commission highlighted Israel’s recent blocking of humanitarian aid to Gaza and the planned E1 settlement project, which aims to connect East Jerusalem—regarded by Palestinians as the capital of a future state—to the Maale Adumim settlement.
Israel’s Finance Minister Bezalel Smotrich, targeted for sanctions by the EU, said the E1 plan “buries the idea of a Palestinian state” and vowed last year to build a new settlement for every country that recognises Palestine.
The EU’s sanctions proposal also includes Prime Minister Benjamin Netanyahu, nine individuals, and five entities involved in settler violence and obstruction of humanitarian aid in Gaza. Additionally, ten members of the Hamas politburo are targeted.
Israel, ranked 31st on the EU’s trade list, relies heavily on the bloc, with 32% of its total goods trade in 2024. If the sanctions pass, Israel would lose free trade privileges with the EU, facing estimated duties of €227 million annually.
While the Commission called the move “a massively overdue step” recognizing the illegality of Israel’s actions in Gaza and the West Bank, it requires backing from all 27 EU member states. Sanctions would take effect at least 30 days after adoption.
Vice-President of the European Commission, Kaja Kallas, warned that the situation in Gaza “continues to head in the wrong direction,” stating the proposal would send a strong message to Israel that the war must end.
Meanwhile, Euro-Med Monitor criticised the measures as “limited, selective, and perpetuating impunity,” urging the EU to address the root causes of Palestinian suffering over the past 77 years. The organisation called for ending the Israeli occupation, dismantling settler colonialism and apartheid, ensuring refugees’ right of return and compensation, lifting the Gaza blockade, and safeguarding Palestinian rights to self-determination, dignity, and peace.
Official reports state Gaza’s death toll is approaching 65,000, though a new academic study estimates it may be closer to 680,000. Amidst the crisis, the Israeli government has ordered a full evacuation of Gaza City, distributing leaflets in areas already devastated by bombardment, famine, and disease.