The European Union has suspended bilateral support for Israel worth up to €32 million and proposed suspending parts of Israel’s special trade agreement with the bloc, citing the dire humanitarian situation in Gaza.
The European Commission, led by President Ursula von der Leyen, froze payments that would have provided Israel with an average of €6 million annually between 2025 and 2027 from two different EU funds. An additional €14 million in institutional cooperation projects, including twinning programmes, has also been suspended.
The measures affect future yearly allocations and ongoing cooperation projects under the Regional EU-Israel cooperation facility, though the Commission emphasized that work with Israeli civil society and the Yad Vashem Holocaust memorial would continue unaffected.
The Commission has also proposed EU sanctions on extremist Israeli ministers, violent Israeli settlers, and the Palestinian militant group Hamas. However, the trade deal suspension requires approval from member states, needing support from at least 55% of countries representing 65% of the EU’s population.
In a statement, von der Leyen said the action was taken because “the horrific events taking place in Gaza on a daily basis must stop.” She called for an immediate ceasefire, unrestricted humanitarian access, and the release of all hostages held by Hamas.
Citizens and governments have been pressing the EU to take concrete action for nearly two years, but efforts have been impeded by member states with close Israeli ties, including Germany, Hungary, and Italy. A UN investigation has concluded that Israel’s assault on Gaza amounts to genocide.
Taoiseach Micheál Martin “strongly welcomed” the Commission’s proposal, stating that “Ireland has long called for this action.” Tánaiste Simon Harris described it as “a critical turning point,” saying the Commission had “finally tabled concrete proposals for trade measures against Israel.”
Israeli Foreign Minister Gideon Sa’ar condemned the proposals as “morally and politically distorted,” claiming they would “harm Europe’s own interests” and warning that “steps against Israel will be answered accordingly.”
The announcement follows von der Leyen’s pledge during her recent State of the Union speech. Earlier attempts at sanctions failed when EU foreign ministers couldn’t agree on measures despite finding Israel had violated human rights clauses in its EU agreement.