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EU proposes curbing Israel trade ties, sanctioning ministers over Gaza

Kaja Kallas insisted 'the aim is not to punish Israel', but to try to improve the humanitarian situation in Gaza
Kaja Kallas insisted 'the aim is not to punish Israel', but to try to improve the humanitarian situation in Gaza

The European Union has proposed curbing trade ties with Israel and sanctioning ministers in its strongest action over the war in Gaza, though reluctance from key member states risks blocking the measures' adoption.

The bloc's executive, however, said it would take immediate action by itself by freezing some €20 million in bilateral support for Israel.

The move from the EU's executive comes as pressure has mounted on the 27-nation bloc to take action against Israel over its devastating near-two-year offensive in Gaza.

"The horrific events taking place in Gaza on a daily basis must stop," EU chief Ursula von der Leyen said.

"There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas," she said.

EU Council President António Costa, meanwhile, welcomed the proposals, saying the measures are aimed at demonstrating that Europe cannot accept the actions of the Israeli government in Gaza and the West Bank, "which have gone far beyond Israel's legitimate right to self-defence".


Watch: EU Commission proposes sanctions against Israel


Under its new proposals, Brussels is pressing to suspend parts of a cooperation deal with Israel that allow for reduced tariffs on goods coming from the country.

Officials say that would hit more than a third of Israel's exports to the EU worth around €6 billion, including key agricultural produce such as dates and nuts.

The commission also called for asset freezes and visa bans on far-right Israeli government ministers Itamar Ben Gvir and Bezalel Smotrich, whose "extremist" rhetoric is blamed for fuelling the violence.

Those measures - initially floated by Ms von der Leyen in a keynote speech last week - represent the firmest attempt by the EU chief to pressure Israel.

Tánaiste and Minister for Foreign Affairs Simon Harris described the publication by the European Commission of a proposal to suspend the core trade-related parts of the EU's Association Agreement with Israel as "hugely significant".

Simon Harris in front of microphone
Tánaiste Simon Harris said Ireland supports sanctions on Israeli minister and violent settlers

"There is a genocide taking place in Gaza and the findings of the UN Commission of Inquiry earlier this week make clear that this is the case.

"The need for action has never been more urgent. In fact, it is long past due," he said.

Mr Harris said the Commission has finally tabled concrete proposals for trade measures against Israel, adding that "today marks a critical turning point".

"What we now need to see is the Council convened as a matter of urgency to consider these proposals, which Ireland will fully support.

"The package also proposes sanctions on extremist Israeli ministers and violent settlers, as well as on Hamas. Ireland supports these proposals," he said.

The Tánaiste stressed that Ireland has "long called for concrete measures".

"A qualified majority will be required for the trade measures while the sanctions will require unanimity. I will be urging our fellow Member States to support both sets of proposals," he said.

"In addition to the implementation of these measures, we need an urgent ceasefire, the release of all hostages, for humanitarian aid to flow and for a concerted effort to bring about a two-state solution."

'EU countries have very different opinions to Ireland' - Richmond

Minister of State International Development and Diaspora Neale Richmond TD said he would have "much preferred" if today's announcement had happened much sooner, but added that "in EU terms...this is relatively quick".

He said it is why Ireland has been working with Spain, and Slovenia "so hard...to build an alliance to get real action, which this is."

Mr Richmond said EU countries have "for their own reasons - economic, historic, and social - very different opinions to...Ireland [and] we still need to get this implemented".

He said that suspending trade in both goods and services, as well as the "procurement element" of the Association Agreement requires the backing of "at least 16 of the 27 member states, which is 55% - which also constitutes 65% of the population of the European Union".

He said "realistically" it means backing by either Germany or Italy, which he said account for 18% and 11% respectively, of the population of the EU.

He said that France accounts for a further 15%.

"We don't need to get a unanimous decision," he added.

He said the Irish Government will be seeking an "urgent European Council meeting to decide that" and, that at the United Nations General Assembly next week, he and the Taoiseach and the Tánaiste "will spend every waking hour lobbying colleagues, working to build alliances, as we have done, moving from two [EU] member states to 19 member states to review this in the first place to actually get this...relatively modest proposal across the line".

Opposition from member states

Opposition from key member states, especially Ms von der Leyen's own homeland Germany and Italy, means they will struggle to get the backing of enough EU countries to go through.

That reluctance has already stalled a softer proposal to cut funding to Israeli tech start-ups, much to the ire of the raft of EU countries demanding action.

Ms von der Leyen's commission can however decide on its own to freeze bilateral support.

That step will not include funds going to help civil society groups and Israel's Yad Vashem Holocaust memorial.


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'Will not work'

Israel has already urged Brussels against pushing on with the proposals.

"Pressure through sanctions will not work," Israeli Foreign Minister Gideon Saar wrote in a letter to Ms von der Leyen.

EU foreign policy chief Kaja Kallas insisted "the aim is not to punish Israel", but to try to improve the humanitarian situation in Gaza.

The push for action within the EU comes as Israel has drawn fresh international condemnation by launching a major ground assault against Gaza City.

The army unleashed a massive bombardment of Gaza City before dawn yesterday and pushed its troops deeper into Gaza largest urban hub.

It came as a United Nations probe accused Israel of committing genocide in the Palestinian territory, saying Prime Minister Benjamin Netanyahu and other senior officials had incited the crime.

Israeli attacks have killed over 65,000 people in Gaza since October 2023, mostly civilians, according to figures from the territory's health ministry that the United Nations considers reliable.

The current stage of the war was sparked by Hamas's October 2023 attack on southern Israel which resulted in the deaths of 1,219 people, most of them civilians, according to an AFP tally of official figures.

The Israeli military estimates there are 2,000 to 3,000 Hamas militants in central Gaza City, and that about 40% of residents have fled.