The European Commission has proposed a set of sanctions on Israel in response to its military actions in Gaza, citing severe humanitarian concerns and violations of the EU-Israel Association Agreement.

The proposal includes suspending trade benefits that Israel currently enjoys under the €150 billion Association Agreement. If implemented, the suspension could impact over €5.8 billion in Israeli exports, targeting key sectors that benefit from preferential tariff access to the EU single market.

In parallel, the Commission also recommends placing sanctions on two senior Israeli ministers—Bezalel Smotrich, Minister of Finance, and Itamar Ben-Gvir, Minister of National Security—along with a list of 10 Hamas leaders and violent Israeli settlers. Sanctions include asset freezes and travel bans across all EU member states.

This move is grounded in Article 2 of the EU-Israel Association Agreement, which requires adherence to democratic principles and respect for human rights. EU officials have expressed concern that ongoing actions in Gaza breach these foundational terms.

At the same time, the Commission seeks to limit bilateral cooperation with the Israeli government in areas such as research, development, and energy. However, programs involving Israeli civil society and institutions, such as Yad Vashem, will remain untouched.

The proposal faces resistance from several EU countries. Nations such as Germany and Hungary have expressed reluctance, citing diplomatic sensitivities and strategic alliances. Without unanimous backing, particularly on individual sanctions targeting ministers, the Commission’s proposals risk being significantly diluted or blocked entirely.

Israeli officials have dismissed the EU’s proposal as politically motivated. Critics within Israel warn that such measures could escalate tensions and impact bilateral trade relations.

As discussions continue in Brussels, the spotlight remains on how EU member states will navigate this highly charged diplomatic and geopolitical situation.