EU Proposes Sanctions on Far-Right Israeli Ministers, Threatens Trade Suspension Amid Gaza War

by Emmitt Barry, with reporting from Worthy News Jerusalem Bureau Staff

JERUSALEM (Worthy News) – The European Commission on Wednesday formally unveiled a proposal to sanction far-right Israeli ministers and partially suspend the European Union’s association agreement with Israel, marking a dramatic escalation of Europe’s response to the war in Gaza.

If adopted, the measures would revoke Israel’s preferential trade status, subjecting Israeli goods to standard tariffs applied to non-EU trade partners. The Commission also called for suspending bilateral support to Israel—excluding civil society programs and the Yad Vashem Holocaust Remembrance Center.

“Actions taken by the Israeli government represent a breach of essential elements relating to respect for human rights and democratic principles,” the Commission’s review concluded. “This entitles the EU to suspend the Agreement unilaterally.”

Commission President Ursula von der Leyen sharpened her appeal, saying: “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.”

Trade at Stake

The EU is Israel’s largest trading partner, with bilateral trade reaching €42.6 billion ($46 billion) in 2024. Israel exported €15.9 billion in goods to the EU last year, nearly a third of its global trade volume.

If approved, the sanctions would also halt €6 million in annual EU financial support to Israel and €14 million in support for projects linked to the Abraham Accords, the normalization agreements between Israel and several Arab states.

The measures require approval by the European Council, where at least 15 of 27 member states representing 65% of the EU population must agree—a high threshold given divisions among European capitals. The proposed sanctions on Finance Minister Bezalel Smotrich, National Security Minister Itamar Ben Gvir, violent settlers, and 10 Hamas leaders require unanimous approval.

Israeli Pushback

Israeli leaders denounced the proposals. Foreign Minister Gideon Sa’ar called them “morally and politically distorted,” warning, “Actions against Israel will harm the interests of Europe itself.”

Prime Minister Benjamin Netanyahu recently acknowledged fears of “economic isolation,” warning Israel might be forced into becoming a “super Sparta”—a more self-reliant defense economy. He later walked back the remarks, clarifying they referred specifically to Israel’s defense industry.

Ron Tomer, president of Israel’s Manufacturers Association, slammed the Commission’s plan as “a political decision disguised as a moral one,” warning it would erode decades of economic cooperation.

Divisions Within Europe

Germany, one of Israel’s closest allies in the EU, said Wednesday it had not yet decided its stance. “The [European] Commission has been discussing them for several days. They will be presented today, and the German government has not yet formed a final opinion,” said government spokesperson Stefan Kornelius.

Von der Leyen previewed the plan in her State of the Union speech last week in Strasbourg, declaring, “Man-made famine can never be a weapon of war. For the sake of the children, for the sake of humanity. This must stop.”

Israel has rejected accusations of using starvation as a weapon, pointing to its facilitation of aid shipments into Gaza. The IDF admits firing warning shots near distribution centers during chaotic scenes, but disputes UN reports that over 1,000 civilians have been killed at aid sites.

If approved, the sanctions could take effect within 30 days of the European Council’s decision, setting the stage for one of the most serious diplomatic and economic clashes between Israel and Europe in decades.

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