EU Commission President Ursula von der Leyen announced plans
for sanctions and a partial trade suspension against Israel over its Gaza
campaign.
The battle in Gaza has caused division within the 27-nation EU, and it is uncertain if a majority will support the trade and sanctions measures. Von der Leyen added that she intends to halt the EU's executive branch's assistance to Israel, which would not need the consent of all member nations.
Protests in several European cities, including Amsterdam and Barcelona, have been sparked by the carnage in Gaza. The bureaucracy in Brussels has also come under fire for what is seen as its incapacity to effectively urge Israel to cease its military actions in the strip and allow more humanitarian aid to enter.
Since the EU is Israel's biggest commercial partner, the actions may have a significant impact on Israel, a country already suffering from the aftermath of a protracted conflict.
Additionally, the commission supports the Palestinian Authority. After claiming that the suffering of children and families in Gaza "has shaken the conscience of the world," von der Leyen announced plans to freeze aid to Israel, sanction far-right Israeli cabinet members and West Bank settlers, and "partial suspend" an Association Agreement that serves as the foundation for EU-Israeli relations, specifically focusing on "trade-related matters."
Von von Leyen's remarks were made the day after Israel's military issued an evacuation warning to Gaza City inhabitants in anticipation of its intentions to seize control of what it claims is Hamas' final stronghold, where hundreds of thousands of people are still suffering from starvation.
“Man-made famine can never be a weapon of war. For the sake of the children, for the sake of humanity. This must stop,”
von der Leyen said, to applause in the European Parliament at a session in Strasbourg, France. Roughly a third of the assembled lawmakers wore red clothes to signify solidarity with people in Gaza.
“We will put our bilateral support to Israel on hold. We will stop all payments in these areas, without affecting our work with Israeli civil society or Yad Vashem,”
the Holocaust memorial von der Leyen told lawmakers during her annual State of the Union address.
Israel claims it lets in adequate humanitarian aid and disputes that there is famine in Gaza. In a social media post, Israeli Foreign Minister Gideon Saar claimed Von der Leyen had given in to pressures that harm ties between Israel and Europe. Her acts will give Hamas more confidence, he said.
Von der Leyen's suggestions were "shamefully late," according to Agnes Callamard, Secretary General of Amnesty International, who wrote on X that the "EU can no longer ignore millions of protestors who for the last 23 months have denounced Israel's crimes." She urged Italy and Germany to support the proposals if they are approved by a vote.
The remarks from von der Leyen astonished Schams El Ghoneimi, a former Middle East advisor in the European Parliament, who stated that "she has been so deaf" to the situation in Gaza and the growing worries expressed by EU officials and member states regarding the situation in the Palestinian enclave.
Germany, Austria, Hungary, and the Czech Republic have defended Israel, whereas Spain, the Netherlands, and Ireland have been the main EU countries criticizing Israel. After the US, Germany is Israel's second-largest supplier of munitions.
“It’s just too late, and too little, given the catastrophe on the ground,”
said Martin Konečný, director of the Brussels-based European Middle East Project. But he said sanctions and suspension of bilateral deals were significant practically and symbolically because of von der Leyen’s public support for Israel.
The EU leader, according to Konečný, is "the embodiment of the very pro-Israel commitment of the EU, especially after the Oct. 7 attack" by Hamas against Israel, which resulted in the war's outbreak and killed 1,200 people while leaving 251 captives.
What are the potential impacts of EU sanctions on Israel's economy?
The EU represents Israel's most important trading partner,
accounting for approximately 32% of Israel's total trade in goods, which
exceeds €42 billion a year. The major sectors would be technology
manufacturing, which represents 20% of Israel's GDP and their exports of
integrated circuits and electronics to Ireland, Germany, and the Netherlands.
A suspension or partial downgrade of the EU-Israel Association Agreement would sever protections, tariffs, and regulatory exemptions, increasing the costs and barriers to exports from Israel, especially for Israel's highly strategic sectors.
Israel is also reliant on imports from the EU, especially concerning raw materials and components critical to its entire manufacturing sector. Any disruption of trade would have spillover effects to production and industrial outputs.