EU Trade Commissioner Maroš Šefčovič said the plan would strip Israeli imports of preferential access so they are charged duties like goods from countries without an EU free-trade deal.
“We regret having to take this step,” he said, calling it a “carefully considered response to an increasingly urgent situation.”
Šefčovič cited total EU-Israel goods trade of €42.6 billion in 2024 and said the bloc remains Israel’s largest trading partner.
The partial suspension would target roughly €6 billion of exports — about 37% of Israel’s sales to the EU — with member states to decide by qualified majority.
He linked the move to humanitarian demands: “unrestrained access for humanitarian aid, the immediate release of all hostages held by Hamas and an urgent ceasefire to stop the bloodshed,” adding that Israel needs “real security” and Palestinians “real dignity.”
The European Commission also proposed sanctions on Israeli officials and extremist settlers, naming Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir, as well as three settlers and several organizations active in parts of the Israeli-occupied West Bank. Ten senior Hamas officials would be listed in a separate package. Unlike the trade step, those sanctions require unanimous backing from all 27 EU states.
Top EU diplomat Kaja Kallas said the aim was “not to punish Israel” but to improve conditions in Gaza through a targeted approach that avoids penalizing Israeli society at large. She acknowledged political headwinds, saying “the political lines are very much where they have been so far,” despite shifting public opinion in member states.
Officials said the tariff plan would impose additional costs and could be accompanied by a suspension of €14 million in direct support for various Israeli projects, while leaving intact EU funds for Yad Vashem, peace-building initiatives, and civil-society groups combating anti-Semitism.
The proposals face strong opposition from several capitals, including Germany, Hungary, Austria, and Italy, and have previously lacked sufficient support in the Council.
A senior Commission official said it was important to show the EU could react “when principles and lines have been crossed.”
The initiative was described as a major shift in Brussels’ approach.
“Public opinion in member states is really shifting,” Kallas said.
Israel’s Foreign Minister Gideon Sa’ar called the announcement “morally and politically distorted,” warning it would hamper ties and be “answered accordingly.” In a letter, he accused Commission President Ursula von der Leyen of empowering a terrorist organization by advancing the plan.
The push comes amid large demonstrations across Europe and appeals from some EU leaders for stronger action.
The Commission’s options are narrower than some governments sought, but still mark a course change as von der Leyen and Kallas prepare for diplomatic engagements around the United Nations General Assembly, where broader debates on Gaza and Palestinian statehood are expected.
(jh)
Source: EURACTIV, Politico, The Guardian