— In a State of the Union address in Strasbourg, European Commission President Ursula von der Leyen said the Commission will propose sanctions on extremist Israeli ministers and a partial suspension of trade-related measures in the EU‑Israel Association Agreement. The moves are presented as a response to Israel’s conduct in the Gaza war and are intended as both policy and political signals to member states. Any concrete measures would require agreement among EU countries and face immediate diplomatic friction with Israel, which called the comments “regrettable.”
Key Takeaways
- The Commission will propose sanctions on extremist ministers and violent settlers and a partial suspension of trade-related measures in the EU‑Israel Association Agreement, announced on Sept. 10, 2025.
- Trade in goods between the EU and Israel was €42.6 billion in the previous year, underlining the economic stakes of any trade suspension.
- Suspending the trade chapter would remove trade preferences for Israeli products and requires a qualified majority vote: 15 of 27 member states representing 65% of the EU population.
- Sanctions on individuals under current EU rules require unanimity among member states; Hungary has so far blocked proposals targeting violent settlers.
- The bloc is divided: Ireland, Spain, Denmark, Sweden and the Netherlands back suspension options while Germany, Hungary and the Czech Republic oppose such steps.
- Von der Leyen said the Commission will pause bilateral support for Israel but continue engagement with Israeli civil society and Yad Vashem; details on funding cuts were not provided.
- The Commission plans to convene a Palestine Donor Group next month and set up an instrument for Gaza reconstruction.
Background
Rising criticism within the EU over Israel’s military conduct in Gaza has put Brussels under pressure to translate political concern into concrete measures. The European Commission, led by von der Leyen, has been pushed by several member states and civil society groups to use trade and funding levers to influence Israeli policy. Historically, the EU and Israel have maintained a broad association built on trade liberalisation, research cooperation and political dialogue; changing that architecture is legally and politically complex.
Past attempts to restrict Israeli participation in EU programmes—such as research funding—have failed to win the necessary support from all member states. Voting rules differ by policy area: measures affecting trade preferences can pass with a qualified majority, while individual sanctions typically require unanimity. That division has allowed a handful of member states to block or slow punitive moves.
Main Event
In her address to the European Parliament in Strasbourg on Sept. 10, 2025, von der Leyen framed the Commission’s proposals as a response to what she described as actions in Gaza that have “shaken the conscience of the world.” She announced two principal steps: proposing sanctions on extremist ministers and violent settlers, and putting forward a partial suspension of trade-related aspects of the Association Agreement with Israel.
Von der Leyen did not identify specific ministers by name or list which trade measures would be suspended; the Commission said those details will be developed for member-state consideration. She acknowledged internal EU divisions but argued the Commission must act within the legal tools at its disposal, even if member states will ultimately decide whether to approve the measures.
Israel reacted swiftly. Foreign Minister Gideon Saar called von der Leyen’s remarks “regrettable” on the social platform X, reiterating Israel’s position that suffering in Gaza stems from Hamas actions and stressing Israel’s humanitarian contributions. The Commission said it will pause certain bilateral support lines while preserving ties with Israeli civil society and Holocaust remembrance institutions.
Analysis & Implications
If the Commission’s proposals move forward, they would test the EU’s capacity to translate moral pressure into enforceable policy. A partial suspension of trade-related elements of the Association Agreement would have practical effects on customs and preferential tariffs, potentially disrupting flows of goods valued at €42.6 billion annually. Businesses and supply chains on both sides could face uncertainty while member states debate the measures.
Politically, the proposals are as much a signalling device as a deliverable. von der Leyen framed the step as demonstrating that the EU will not be indifferent to civilian suffering, but she also acknowledged the measure might be “too much for some, too little for others.” The need for either qualified-majority approval for trade suspension or unanimity for individual sanctions means the Commission’s proposals may be pared back in negotiations.
The move also raises geopolitical risks. Germany’s reluctance and Hungary’s blocking of prior sanctions show that consensus is far from guaranteed. If member states cannot agree, the Commission could face a credibility test: announcing tough measures but failing to secure implementation would frustrate allies pushing for stronger action and deepen rifts within the bloc.
Comparison & Data
| Metric | EU–Israel (Latest Annual) |
|---|---|
| Trade in goods | €42.6 billion |
| Qualified majority to suspend trade chapter | 15 of 27 states (65% of EU population) |
| Vote for individual sanctions | Unanimity among member states |
The table highlights the scale of bilateral trade and the contrasting voting thresholds that shape what measures are feasible. A trade suspension can be enacted with QMV, making it technically more attainable than individual sanctions, but political reality—member-state opposition—remains decisive.
Reactions & Quotes
Before and after the announcement, officials and member states framed the proposals within domestic and diplomatic constraints.
“What is happening in Gaza has shaken the conscience of the world,”
Ursula von der Leyen, European Commission President
Von der Leyen used the phrase to justify pushing the Commission to present concrete options despite foreseeable resistance among capitals. She positioned the Commission’s initiative as a moral and institutional response rather than an immediate policy change.
“The president errs in yielding to the pressures of elements that seek to undermine Israel–Europe relations,”
Gideon Saar, Israeli Foreign Minister (post on X)
Israel’s foreign minister framed the Commission’s comments as damaging to bilateral ties and reiterated Israel’s attribution of Gaza’s suffering to Hamas, underscoring the diplomatic strain the proposals will cause.
“We Europeans cannot have normal relations with Israel when there is a flagrant, systematic, daily violation of human rights in Gaza,”
Jose Manuel Albares, Spanish Foreign Minister
Spain welcomed the Commission’s move, reflecting the positions of member states pushing for stronger measures and illustrating the cleavage within the EU.
Unconfirmed
- Specific names of the “extremist ministers” intended for sanctions have not been released by the Commission and remain unconfirmed.
- The exact trade measures to be suspended and the timetable for any implementation were not specified and require further clarification.
- The scale and lines of bilateral funding to be paused were not disclosed; the financial impact on EU‑Israel cooperation is therefore unquantified.
Bottom Line
The Commission’s proposals mark a rare and politically charged step by the EU executive to respond to the Gaza war with concrete levers targeting Israel: targeted sanctions and partial suspension of trade provisions. While the announcement signals a shift in Brussels’ posture, formal adoption depends on member-state votes with different thresholds, making the outcome uncertain.
For businesses, diplomats and advocates, the coming weeks will be decisive: member states must weigh legal options, economic fallout and geopolitical consequences. Even if full measures are blocked, the initiative recalibrates expectations about how the EU may use trade and funding instruments in response to international crises.