EU Proposes Suspending Israel’s Access to Tech Startup Funds Over Gaza War

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The European Commission has proposed suspending Israel’s access to European Union funds for technology start-ups, as pressure mounts over the worsening humanitarian crisis in Gaza.

This move from Brussels comes as several EU member states push for concrete action against Israel amid growing fears of deepening hunger in the war-torn Palestinian territory.

“Even though Israel has announced a daily humanitarian pause in fighting in Gaza… the situation remains dire,” the European Commission said in a statement.

The proposal to partially suspend Israel’s participation in the Horizon mega research program will be discussed by the EU’s 27 member states on Tuesday.

Such a suspension requires approval by a majority of member states to take effect.

The EU has struggled to take unified measures on the Gaza conflict, being divided between strong supporters of Israel and those with a more pro-Palestinian stance.

This month, EU foreign policy chief Kaja Kallas presented a set of options to punish Israel after it was found to have violated its cooperation agreement with the EU on human rights grounds.

Brussels also said it had reached an agreement with Israel to increase humanitarian aid access in Gaza.

While the EU acknowledges that Israel has taken some steps to deliver on its promises to improve aid flows, much more remains to be done.

The partial suspension of access to the Horizon program is one of the most limited measures Brussels can adopt but is seen as an important first signal to Israel that the bloc is ready to act if the situation in Gaza does not improve.

The proposal would halt funding access for Israeli start-ups operating in sectors such as drone technology, cybersecurity, and artificial intelligence.

In 2024, Israel was among the top three countries competing for Horizon funds, alongside Germany and France.

With over 2 million Gazans facing hunger and malnutrition, Israel came under renewed international pressure over the weekend and announced a daily “tactical pause” in fighting in some areas.

On Monday, trucks carrying food reached starving Gazans after Israel promised to open safe aid corridors, but aid agencies warned that far larger shipments are needed to prevent mass starvation.

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