Following the announcement of European Commission President von der Leyen in her State of the Union address, the European Commission presented today (Wednesday) its proposal to the Council to suspend certain trade-related provisions of the Association Agreement between the EU and Israel (“the Agreement”) as well as its proposals for sanctions on Hamas, extremist ministers and violent settlers.
The Commission is also putting on hold its bilateral support to Israel, with the exception of support to civil society and Yad Vashem. Concretely, this affects future yearly allocations between 2025 and 2027, as well as ongoing institutional cooperation projects with Israel and projects funded under the Regional EU-Israel cooperation facility.
The EU claimed that the proposals follow a review of Israel's compliance with Article 2 of the Agreement, which found that actions taken by the Israeli government represent a "breach of essential elements relating to respect for human rights and democratic principles," which it further claimed "entitles the EU to suspend the Agreement unilaterally."
European Commission President, Ursula von der Leyen, said: “The horrific events taking place in Gaza on a daily basis must stop. There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas. The European Union remains the biggest donor of humanitarian aid and an unwavering champion of the two-state solution. Reflecting these principled commitments, and taking into account serious recent developments in the West Bank, we propose to suspend trade concessions with Israel, sanction extremist ministers and violent settlers, and put bilateral support to Israel on hold, without affecting our work with Israeli civil society or Yad Vashem.”
The suspension concerns the core trade-related provisions of the Agreement, and in practice means that imports from Israel will lose their preferential access to the EU market. These goods will therefore be charged duties at the level applied to any other third country with whom the EU has no free trade agreement.
The Commission is proposing a Council decision on the suspension of certain trade-related provisions of the Agreement that fall within the Union's common commercial policy. The Council needs to adopt the decision with a qualified majority. The decision will enter into force on the date of its adoption. Once the decision is adopted, the EU-Israel Association Council will be notified about the suspension. The suspension will take effect 30 days after the notification to the Association Council.
In addition to the suspension of the trade agreement, the move would impose sanctions on Israeli ministers, "settlers," and members of the Hamas politburo.
Yesterday (Tuesday), Israeli Foreign Minister Gideon Sa’ar sent a sharp letter to European Commission President Ursula von der Leyen, ahead of the discussion on proposals to suspend trade clauses in the agreement with Israel.
In his letter, Sa’ar noted that the proposal was raised “without any prior notice, in a rush, without any consultation with us, and contrary to the spirit of the agreement,” calling it an “unprecedented” move that has never been applied against any other country.
The letter contained severe criticisms of both the proposal itself and the sources of information it relied upon, expressing concern that EU action could strengthen Hamas and endanger efforts to restore calm.
“This unprecedented proposal, which has never been applied against any other country, constitutes a clear attempt to harm Israel while we are still fighting a war imposed on us following the terror attack of October 7—the largest massacre of Jews since the Holocaust. This existential war is being waged against Hamas and other terrorist organizations in Gaza, while we are simultaneously attacked by the Houthis in Yemen,” the Foreign Minister wrote.
According to Sa’ar, the proposal effectively empowers the murderous terrorist organization Hamas. “It is extremely troubling that the promotion of such a proposal effectively grants power to a terrorist organization responsible for horrific crimes and continuing to commit them, while Israel—a long-standing partner of the European Union—is engaged in an existential war. This also endangers ongoing efforts to bring the war to an end.”
He further stressed that pressuring Israel through sanctions is ineffective and emphasized Israel’s right to defend itself: “The State of Israel is a sovereign and proud nation. We will not yield to threats when our security is at stake.”
Sa’ar also criticized the procedural handling of the proposal, claiming it violated principles of fairness and good faith: “You did not even meet the minimum requirements of a fair process and acted in bad faith. Israel was not given sufficient notice of the current proposal, nor was it given even the smallest opportunity to respond.”
He added a sharp critique regarding the reliability of the information: “The President and the Union rely heavily on unverified and distorted data under Hamas control. In doing so, the EU is playing into Hamas’ hands and its calculated strategy to harm Israel and undermine its right to exist.”
“Eighty years have passed since the Holocaust occurred on European soil, where six million of our people were murdered. We established a homeland for the Jewish people in their ancestral land, and we fight tirelessly for our lives and security. Harming Israel by Europe, at a time when attempts are being made to annihilate the remaining survivors of the Jewish people and their sole state, constitutes a trampling of every moral norm and a disregard for Europe’s historical responsibility,” Sa’ar concluded.