Ursula von der Leyen Announces Tougher EU Action on Israel

European Commission President Ursula von der Leyen announced a significant shift in the EU’s approach to Israel during her annual State of the Union address on September 13, 2023. In response to the ongoing humanitarian crisis in Gaza, she pledged to impose sanctions on “extremist ministers” and violent settlers, along with a suspension of bilateral payments to Israel. This announcement drew a mixed reaction from the European Parliament, filled with both applause and jeers as divisions within the assembly became evident.

Von der Leyen emphasized that the EU’s executive body would take a firmer stance, stating, “What is happening in Gaza is unacceptable.” She outlined plans to propose sanctions targeting specific Israeli officials, despite knowing that consensus among member states has been challenging. The proposed measures, including a partial suspension of trade components of the EU-Israel Association Agreement, reflect a growing urgency to address public anger over the situation in Gaza.

The announcement indicated that while the EU would pause support for Israel, funding for cultural institutions such as Yad Vashem, which commemorates the Holocaust, would remain unaffected. Von der Leyen remarked on the dire circumstances in Gaza, referring to the situation as a “man-made famine” and called for immediate action to alleviate human suffering.

As the EU’s largest trading partner with Israel, accounting for 32 percent of its total trade in 2024, any suspension of trade aspects could significantly impact the Israeli economy. The EU’s exports to Israel, which include machinery, chemicals, and other manufactured goods, totaled approximately €26.7 billion in 2024.

The political landscape in the European Parliament further complicated the situation. Prior to von der Leyen’s speech, key political factions struggled to unite on a resolution concerning Gaza. Members of the European People’s Party (EPP), von der Leyen’s own party, walked out of negotiations over disagreements on the resolution’s content. Consequently, officials indicated that the resolution was unlikely to pass in the upcoming vote.

Despite the internal discord, von der Leyen’s firm stance has sparked hope among center-left political groups that the EPP may reconsider its position. Hilde Vautmans, a lawmaker from the liberal Renew group, expressed optimism that von der Leyen’s proposals would influence the EPP’s support for the resolution, stating, “She has set a new and important direction.”

While the proposed suspension of the trade aspects of the EU-Israel Association Agreement would not equate to targeted sanctions or a comprehensive arms embargo, it could reintroduce tariffs that would exert economic pressure. Achieving the necessary majority to implement such measures remains uncertain, as critical countries like Italy and Germany have historically shown strong support for Israel.

The European Commission’s earlier proposal to suspend Israel’s participation in the Horizon research and innovation fund failed to gain traction among member states. Allies of Israel within the EU, including Hungary, Czechia, Austria, and Poland, are also expected to maintain their support, making any substantial changes to the EU’s stance a complex challenge.

As the humanitarian crisis in Gaza continues to unfold, von der Leyen’s announcements signal a critical moment for the European Union’s foreign policy direction. The evolving situation will require careful navigation of both political sentiments and humanitarian imperatives.