EU funding sanctions on Israel face resistance

In Europe News by Newsroom13-08-2025

EU funding sanctions on Israel face resistance

Summary

  • EU proposal to restrict Israeli access to funds is stalled.
  • Germany among key countries blocking EU sanctions on Israel.
  • Germany cites historical responsibility and prefers dialogue over sanctions.
  • Partial arms embargo by Germany signals strained support amid Gaza crisis.
  • The EU discusses but lacks consensus on punitive measures against Israel.

European Union (EU) sources told DW that Germany is one of the countries requesting further time for review. It is improbable that the initiative will go forward without Berlin's support.

"Humanitarian suffering in Gaza has reached unimaginable levels, with famine unfolding before our eyes,"


the EU's executive warned on Tuesday.

 

In late July, it suggested preventing Israeli businesses from receiving a portion of a pot of EU research funds known as "Horizon Europe" in an effort to put pressure on Israel to alter its direction.

 

That signaled a change in the EU sanctions on Israel: for the first time, the bloc took concrete steps to support a year and a half of harsh rhetoric.

"With its intervention in the Gaza Strip and the ensuing humanitarian catastrophe, including thousands of civilian deaths and rapidly rising numbers of spreading extreme malnutrition specifically of children, Israel is violating human rights and humanitarian law and thus is in breach of an essential principle of the EU-Israel cooperation,"


the European Commission wrote in its proposal on July 28.

 

Maxime Prevot, the foreign minister of Belgium, had suggested August 13 as a potential adoption date if agreement could be reached, but EU sources told DW that there was little change in stance during a virtual conference of EU ministers on Monday.

 

Thus, there isn't a green light at this time.

 

A so-called qualified majority of the bloc's 27 member states must approve the EU plan before it can take effect; under this approach, the opinions of the more populous nations are given the most weight.

 

Brussels' plan to impose financial restrictions was deemed "regrettable" by Israel's foreign ministry, which also asserted that any punitive actions would simply "strengthen Hamas," a charge the bloc disputes.

 

Israel denounced the EU sanctions on Israel as a "moral and methodological failure" based on skewed evidence in a leaked letter obtained by DW, but the group maintains its conclusions.

 

Spain, which is frequently regarded as a harsh critic of the Israeli government, is now demanding that the EU-Israel accord be terminated in its entirety.

 

Other EU nations that are typically viewed as less critical of Israel, such as Sweden and the Netherlands, want to halt the deal's commercial component. Exporting to the EU, Israel's largest economic partner, will become more costly and challenging for Israeli businesses as a result of the move.

 

In the midst of a worsening humanitarian situation, the EU says its top goal is to get aid into Gaza. Last month, the bloc made an announcement that seemed to be a breakthrough after threatening sanctions.

"Significant steps have been agreed by Israel to improve the humanitarian situation in the Gaza Strip,"


EU top diplomat Kaja Kallas said a July 10 statement on the so-called "common understanding" — which Germany also helped broker.

 

Weeks later, however, many EU capitals feel this is far from enough. EU officials continue to denounce, with action measures stuck in an institutional gridlock.

"I call for the immediate release of all Israeli hostages by Hamas & Islamic Jihad,"


EU crisis management chief Hadja Lahbib said on August 3, adding that she also calls "on Israel to end its starvation of Gaza and to allow for an effective delivery of humanitarian aid at scale."


Why are Germany and other EU states blocking proposed sanctions on Israel?


Germany has a special historical obligation towards Israel because of the Holocaust and the systematic murder of six million Jews. 

 

This leads Germany to be cautious about punitive measures that could harm Israel, emphasizing dialogue and careful diplomacy rather than immediate sanctions.

 

Germany and Italy have requested additional time to fully examine the European Commission's proposals to restrict Israel's access to EU funds, such as the Horizon Europe research funding. Without Germany's backing, the proposal faces significant challenges in progressing since it requires a qualified majority within the EU.

 

EU funding sanctions on Israel face resistance