As announced, the EU Commission has proposed a package of sanctions against Israel."The operation in Gaza City represents an escalation of the war," explained EU High Representative Kaja Kallas, which is why"today we are presenting a robust package of sanctions: the aim is not to punish Israel but to improve the situation in Gaza." "In addition to the extremist Israeli ministers, National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, the package – which must be approved unanimously –"includes other members of Hamas and violent settlers," Kallas specified. The proposal also includes measures on trade, but there are doubts: among these there is nothing that affects illegal settlements in the West Bank and arms exports from Europe to the Jewish state.
The proposal aims to suspend a portion—"the most significant"—of the trade agreement between the EU and Israel, equivalent to 37% of the total volume. The remainder, a senior European official explains, is governed by agreements reached within the framework of the WTO (World Trade Organization) and is not subject to the measures. In practical terms, this amounts to approximately €227 million per year, which will now be subject to increased duties and therefore applied to European importers: in total, in 2024, the EU imported goods from Israel worth €16 billion. The bulk will concern agricultural products. The association agreement also covers the services sector, but, the Commission points out, this portion has remained essentially on paper and is therefore insignificant.
The proposal now needs to be approved by the member states with a qualified majority."If the Council approves it, we will notify the managing body of the association agreement with Israel, and the measures will enter into force after 30 days, which is standard practice," the official specifies.
Another issue concerns programs that fall directly under the Commission's control (twinning or regional integration projects, such as those provided for by the Abraham Accords)."We are suspending bilateral support to the Israeli government. Specifically, €14 million in funds already allocated for the 2020-2024 period. Of this amount, €4.3 million has been contracted, while €9.4 million remains uncontracted. Until further notice, we will not proceed with the joint identification of new actions or the signing of contracts," announced EU Commissioner for the Mediterranean Dubravka Šuica, emphasizing that in this case the EU executive was able to make an"independent decision."
The measures, however, raise several questions. For example, they will not affect products originating from the settlements —that is, anything beyond the 1967 borders—since the agreement only covers what the EU recognizes as the State of Israel , and the settlements, being illegal, are not. A separate proposal will therefore be needed to target goods originating from the occupied territories.
There is another aspect of the issue that raises serious doubts about the credibility of the measures. The arms sector will not be affected by the Commission's proposal since it is not covered by the specific provisions of the Association Agreement, but is covered by the general WTO framework, the official explained, outlining the details of the executive's proposal and emphasizing that armaments often benefit from the" confidentiality clause," so it is not possible to know with certainty how much it affects overall trade between the EU and Israel.
Despite everything, Maroš Šefčovič finds it necessary to express his regret: “ We regret having to take these measures – said the Trade Commissioner – but we believe that they are fair and proportionate given what is happening in Gaza from a humanitarian point of view”.
Tel Aviv's response was harsh:"The recommendation of the EU Commission, led by President Ursula von der Leyen, is morally and politically distorted, and it is hoped that, as in the past, it will not be adopted," Israeli Foreign Minister Gideon Sáar wrote on X."Any measures against Israel will receive an appropriate response, although we hope it does not come to that." "Actions against Israel would harm Europe's own interests. Israel will continue to fight, with the help of its friends in Europe," he added.
