The European Commission has proposed to the EU Council the suspension of certain trade provisions under the EU–Israel Association Agreement, as well as the introduction of sanctions targeting “extremist ministers” in Israel’s government, violent settlers, and members of Hamas.
According to the Commission, the move comes after “serious violations of fundamental elements of the agreement, particularly Article 2, which requires respect for human rights and democratic principles.”
If approved, Israel would lose preferential trade benefits under the agreement. This would mean:
- Israeli goods would no longer enjoy reduced tariffs and would instead face standard EU rates.
- Israeli companies would lose rights related to business establishment and service provision in the EU.
- Privileges in public procurement, competition rules, and intellectual property protection would be suspended.
As a result, Israeli firms would lose access to EU public sector tenders, as well as preferential treatment for investments and patent protections.
The proposal also includes sanctions against nine extremist Israeli ministers, violent settlers, and ten members of Hamas’s political bureau.
While financial support to the Israeli government would be halted, the EU stressed that assistance to Israeli civil society and the Yad Vashem Holocaust memorial would continue.
The Commission highlighted the worsening humanitarian crisis in Gaza, citing UN reports that 90% of households face severe water shortages and that malnutrition is rapidly increasing amid mass displacement, collapsed services, and famine.
European Commission President Ursula von der Leyen stated: “The horrific events in Gaza must stop. An immediate ceasefire is essential, as well as unrestricted humanitarian access and the release of all hostages held by Hamas. The EU remains the largest donor of humanitarian aid and a steadfast supporter of a two-state solution.”
EU High Representative for Foreign Affairs Kaja Kallas added that the EU must pressure Israel to change course: “The suspension of trade preferences and sanctions will send a strong message: this war must end, the suffering must stop, and the hostages must be freed.”
For the proposal to take effect, the EU Council must adopt it — by qualified majority for trade suspension and unanimity for sanctions.
