European commission proposes unprecedented sanctions against Israel amid Gaza crisis
The European Commission proposed a new set of sanctions against Israel on Wednesday, responding to the "untenable" situation in Gaza. However, these unprecedented measures since the start of the Israel-Hamas war are unlikely to gain approval from the EU's 27 member states.
The proposal includes targeted sanctions against two far-right Israeli ministers and "extremist" settlers in the West Bank. Additionally, a dozen Hamas officials, responsible for the unprecedented October 7, 2023 attack on Israel, are also named in the proposed sanctions list.
"I want to be very clear, the goal is not to punish Israel. The goal is to improve the humanitarian situation in Gaza," said European Union foreign policy chief, Kaja Kallas, during a press briefing. Israel has already urged Brussels to halt the proposals, with Israeli Foreign Minister Gideon Saar writing to European Commission President Ursula von der Leyen: "Sanctions pressure will not work." If implemented, the sanctions would impose tariffs on Israeli exports, particularly agricultural products.
The European Commission also proposed sanctions against two extreme-right Israeli ministers, Itamar Ben-Gvir, responsible for National Security, and Bezalel Smotrich, in charge of Finance. These sanctions were first suggested in August 2024, but failed to gain consensus among the 27 EU member states. For sanctions to pass, unanimous approval from all EU countries is required.
Sanctions Targeting Extremist Settlers
The European Commission continues to advocate for sanctions against extremist Israeli settlers in the West Bank, a proposal it made months ago. However, it remains uncertain whether Hungary, the only EU member state currently blocking these sanctions, will lift its veto, according to a senior EU official speaking on condition of anonymity.
Commercial sanctions, however, seem more feasible as they only require a qualified majority of member states for approval. Still, even here, it’s unlikely that the dynamics within the EU will drastically change. "You are well aware of the situation within the Council of Ministers," Kallas said, referring to the EU’s decision-making body.
Several countries, including Germany and Italy, have already opposed limited sanctions in recent weeks, even though the European Commission described those measures as relatively modest. There is no indication that these states are now ready to approve more ambitious commercial measures. "I think the political lines are very similar to those we've seen up to now," Kallas admitted.
In response to the ongoing crisis, Ursula von der Leyen promised last week before the European Parliament in Strasbourg that sanctions would be swiftly proposed. "Man-made famine can never be used as a weapon of war," she said, referring to the "unacceptable" situation in Gaza.
Impact of Proposed Sanctions
In practical terms, if the 27 member states agree to the measures, approximately 37% of Israeli imports to the EU (worth 15.9 billion euros) would be re-taxed according to World Trade Organization (WTO) rules. The most affected products would be agricultural imports. For example, fruits and fruit-based products could be subject to tariffs ranging from 8% to 40%. However, the additional cost for importers of Israeli products would not exceed 227 million euros annually, according to the European Commission’s calculations. The EU remains Israel's largest trading partner.
The European Commission also announced the suspension of bilateral aid to Israel, amounting to around 20 million euros, while reaffirming its continued support for Palestinians and Israeli civil society.
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