The European Commission has frozen bilateral funding for Israel over its genocidal actions in Gaza, meaning the country will not receive around €32 million. Moreover, the EU has proposed a plan to curb trade ties with Israel as well as sanction top officials over human rights abuses against the Palestinian people.

Citizens and EU member states who oppose Israel’s ongoing military offensive in Gaza have been pressuring the Union to act and impose sanctions on the nation for years. Until recently, the EU had failed to adopt appropriate measures despite pressure.

Now, the bloc’s executive has finally taken action by suspending bilateral support for Israel. Between 2025 and 2027, Israel was to receive an average of €6 million per year from the EU, which the Commission has now suspended. Moreover, Israel won’t receive approximately €14 million for institutional cooperation projects, including twinning programmes and projects under the Regional EU-Israel cooperation facility.

The European Commission has also proposed the suspension of an agreement that grants Israel special trade concessions in the EU market. If approved, the measures would impose tariffs on around €5.8 billion of imported goods from Israel, as well as impose sanctions on Israeli National Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich.

The plan still needs to be approved by EU member states, some of which, such as Germany, Hungary and Italy, have close ties with Israel and might oppose the measures. Reluctance from such countries to act against Israel has stalled previous proposed action, such as cutting funding to Israeli tech start-ups.

In a statement to announce the plan, Ursula von der Leyen said that the Commission was moving to sanction Israel because “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,” she said.

“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 (World Holocaust Remembrance Centre).”

Following the statement, Tánaiste and Minister for Foreign Affairs Simon Harris said: “Today marks a critical turning point in holding Israel accountable.”

Israel responded to the announcement by saying that the Commission’s proposals are “morally and politically distorted”. Israeli foreign minister Gideon Sa’ar said that “moves against Israel will harm Europe’s own interests”.

“Steps against Israel will be answered accordingly, and we hope we will not be required to take them,” he added.

Over 65,000 Palestinians have been killed since October 7, 2023, and a “worst-case scenario famine” has also been declared in Gaza due to an aid blockade imposed by Israel. An independent UN commission has recently concluded that Israel is committing genocide against Palestinians, as the nation has launched its ground invasion in Gaza City.

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