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Ceasefire or Sanctions? Europe’s Next Steps with Israel in Focus

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The European Union’s (EU) relationship with Israel has long been shaped by a delicate balance of diplomacy, trade, and human rights considerations. Recent developments, particularly Israel’s actions in Gaza and the West Bank, have sparked debates within the EU about potential policy shifts. As the EU’s foreign policy chief, Kaja Kallas, prepares to present options for addressing Israel’s breach of the EU-Israel Association Agreement, questions arise about whether Europe is poised for a significant change in its approach.

The EU-Israel Association Agreement: A Breach in Human Rights

The EU-Israel Association Agreement, a cornerstone of bilateral relations, includes a human rights clause that binds both parties to uphold fundamental rights. In May, the EU initiated a review of this agreement following Israel’s military offensive in Gaza and the West Bank, which included blocking essential supplies like food, fuel, water, and medical aid to the besieged population. An eight-page review recently confirmed Israel’s violation of the human rights clause, prompting calls for action.

According to Euronews, Kaja Kallas will present five potential options to member states to address this breach:

  1. Full or Partial Suspension of the Association Agreement: This would involve halting or limiting the agreement’s provisions, including trade and cooperation frameworks.

  2. Sanctions on Individuals: Targeting Israeli government officials, military personnel, or extremist settlers for human rights violations.

  3. Trade Measures: Implementing restrictions on trade with Israel, though this falls under the European Commission’s exclusive competence.

  4. Arms Embargo: Halting arms sales to Israel, a sensitive issue given Germany’s significant role as an arms supplier.

  5. Suspension of Scientific Cooperation: Pausing Israel’s participation in programs like Horizon Europe, which only requires a qualified majority vote.

These options reflect a spectrum of responses, from symbolic to severe, but their implementation faces significant hurdles due to the EU’s internal divisions.

Internal Divisions: A Barrier to Consensus

The EU’s decision-making process requires either unanimous agreement or a qualified majority vote (QMV), depending on the measure. However, member states are deeply divided on how to approach Israel. Countries like Germany, Hungary, the Czech Republic, Austria, and potentially Italy are reluctant to support punitive measures. For instance:

  • Germany’s Stance: Despite Chancellor Friedrich Merz criticizing Israel’s actions as unjustifiable in the context of civilian suffering, German officials have reportedly aligned with Tel Aviv, opposing measures like an arms embargo or trade sanctions.

  • Hungary and the Czech Republic: These nations are staunch supporters of Israel and are unlikely to back any suspension of the Association Agreement or sanctions.

  • European Commission’s Role: The Commission, led by President Ursula von der Leyen, holds authority over trade measures. In a recent top-secret meeting, the 27 Commissioners rejected trade sanctions, signaling resistance to economic penalties.

The lack of consensus makes a full suspension of the Association Agreement—a measure requiring unanimous support—virtually impossible. Even less severe options, like suspending Israel’s Horizon Europe membership, lack momentum, as sources indicate “no appetite” within the EU to act decisively against Israel.

External Influences: Ceasefire Talks and Global Sanctions

Recent geopolitical developments add complexity to the EU’s deliberations. Israel’s strikes against Iran and ongoing ceasefire negotiations in Gaza, potentially involving the Trump administration and Israeli Prime Minister Benjamin Netanyahu, have dampened enthusiasm for punitive measures. Some EU officials argue that a ceasefire could shift the dynamics, reducing the need for immediate action.

Meanwhile, other Western nations have taken steps against Israeli officials. Last month, the UK, Australia, Canada, New Zealand, and Norway imposed sanctions on Israeli ministers Itamar Ben Gvir and Bezalel Smotrich for inciting violence against Palestinian communities. These actions contrast with the EU’s hesitancy, highlighting a divergence in Western approaches to Israel’s policies.

Humanitarian Crisis: The Driving Force

The humanitarian crisis in Gaza and the West Bank remains a focal point for EU policymakers. Kaja Kallas has emphasized the need to “stop the killing and get food, medicine, and aid into Gaza,” dispatching Christophe Bigot, the EU’s special representative for the Middle East peace process, to assess the situation on the ground. The EU’s review of Israel’s actions underscores the severity of the crisis, with documented violations including the deliberate restriction of essential supplies to civilians.

However, some member states argue that punitive measures may not improve the situation. An EU official from a country opposing action told Euronews that they would only support measures that “improve the situation on the ground,” expressing skepticism about the effectiveness of sanctions or suspensions.

What Lies Ahead for EU-Israel Relations?

The EU’s response to Israel’s actions reflects a broader struggle to balance human rights commitments with geopolitical realities. While the breach of the EU-Israel Association Agreement has prompted a formal review and proposed options, the lack of consensus among member states and the European Commission’s reluctance to pursue trade measures suggest that significant policy changes are unlikely in the near term.

For now, the EU appears committed to “continuing discussions” while monitoring developments in Gaza and the broader Middle East. The potential for a ceasefire, combined with external pressures from global allies, may shape the EU’s next steps. However, the deep divisions among member states and the complexity of EU decision-making processes highlight the challenges of translating criticism into concrete action.

As Europe navigates this delicate issue, the question remains: will the EU prioritize its human rights principles, or will political and economic considerations maintain the status quo in its relationship with Israel? Only time—and the evolving situation on the ground—will provide clarity.

EU’s potential policy shift towards Israel

The EU’s potential policy shift towards Israel is a complex issue driven by human rights concerns, internal divisions, and global developments. While Kaja Kallas’s proposed options signal a willingness to address Israel’s violations, the lack of unity among member states and the European Commission’s stance on trade measures present significant obstacles. For now, the EU’s approach remains cautious, with discussions ongoing and no immediate consensus in sight.

Mark J Willière
Mark J Willière
Mark J Williere, is a Freelance Journalist based in Brussels, Capital of Belgium and regularly contribute the THINK TANK JOURNAL

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