EU Commission: trade sanctions on Israel

BRUSSELS - As announced last week by European Commission President Ursula von der Leyen, the EU executive yesterday outlined a series of sanctions against Israel, accused of waging an inhuman war against the Gaza population. Some of the proposals will have to be approved by the Council, a step that is not easy to pass as the Twenty-Seven are divided on how to deal with the Jewish state at this juncture.

In detail, the measures involve the partial suspension of the trade chapter of the association agreement signed with Tel Aviv. In fact, Brussels proposes to suspend the trade privileges granted to the country, if better than the most-favoured-nation clause. According to an EU official, the measure would affect about 40% of Israeli exports to the EU (in 2024: EUR 5.8 billion).

The suspension of privileges would entail the application of the most-favoured-nation clause - for example, tariffs of 8-40% on fruit. According to the same EU official, the measure would result in Israeli companies importing into the EU incurring EUR 227 million in extra costs, based on last year's figures. The measure requires Council approval by qualified majority.

In addition, the Commission proposed to target National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, the most extremist settlers and 10 members of Hamas. In this case, the Council has to agree unanimously. Already in August 2024, Brussels had proposed to sanction the two Israeli exponents, without success due to divisions among the Twenty-Seven. Among those opposed were Germany and the Czech Republic. Finally, Brussels also announced the suspension of bilateral aid to Israel, amounting to some 20 million Euros, without however questioning its support for the Palestinians or Israeli civil society. From Jerusalem, Foreign Minister Gideon Saar wrote on X: the European proposals are 'morally and politically distorted, and hopefully will not be adopted'.

'I want to be very clear, the goal is not to punish Israel. The goal is to improve the humanitarian situation in Gaza,' summed up High Representative Kaja Kallas (who also called the situation in Gaza 'intolerable' and demanded sanctions for violent Israeli ministers and settlers) here in Brussels yesterday. The phrase about Israel leaves one puzzled at first. In reality, it is explained by the fact that the task of the former Estonian prime minister is now to defend before the foreign ministers an initiative that lacks unanimity and was announced by Mrs von der Leyen apparently without prior consultation.