Germany blocks EU sanctions against Israel

European countries are divided on whether to impose sanctions on Israel over the war in Gaza, and the split within the EU is preventing any action, it became apparent during a summit of EU foreign ministers held in Copenhagen on Saturday. The positions of the different EU countries were made public on Sunday, after mounting public pressure against the EU for its “silence” and “ignorance” on what is happening in the Gaza Strip. The EU foreign affairs chief Kaja Kallas said that discussions would continue in the coming weeks because there is a “growing majority” supporting measures against Israel. However, she expressed frustration that the discussions “sent the message that we are divided.”

The meeting, which took place in Denmark, the current president of the EU Council, was described as “informal” and dealt mostly with Ukraine, the prospect of a peace agreement or ceasefire with Russia, and European involvement in possible peacekeeping forces in the country. Afterwards, Kallas met the press and avoided any mention of Gaza. This sparked criticism in the media and from pro-Palestinian countries in the EU, and in the past 24 hours, countries have tried to clarify their positions on Israel. Kallas herself said that “it is clear that the member states do not agree on how to pressure the Israeli government to change course.”

The EU is considering several new sanctions on Israel. Suspension of the EU-Israel free trade agreement, which underpins trade worth nearly €50 billion; suspension of Israeli companies from participating in the Horizon research and innovation program, worth hundreds of millions of euros annually; a boycott of products from West Bank Jewish settlements sold in the EU, worth an estimated €200 million a year; and sanctions on violent settlers and extremist ministers such as Bezalel Smotrich and Itamar Ben-Gvir, who oppose a two-state solution.

The sanctions are based on a legal review carried out in the spring, which found indications that Israel is “not committed” to Article 2 of the basic agreement, which states that it must act in accordance with the principles of international law and respect human rights. While the first two sanctions require a qualified majority, the last two require unanimous agreement among the 27 EU member states.

Sweden, Denmark and the Netherlands want to suspend the free trade agreement

The pro-Palestinian EU countries, demanding severe measures, were joined at the Copenhagen summit by Sweden, Denmark and the Netherlands, which now want to suspend the free trade agreement between Israel and the EU. This is a harsh step that would significantly harm the Israeli economy by introducing tariffs on a large part of Israeli exports to the EU, Israel’s biggest trading partner. Although Dutch Foreign Minister Caspar Veldkamp resigned over its refusal to impose sanctions on Israel, his replacement also supports the move.

Countries like Spain, Ireland, Luxembourg and Slovenia also support the harsh approach, while France, Belgium and other countries prefer sanctions such as those proposed by the Commission, to deny budgets for the Horizon program, as well as restrictions on Israeli ministers, a boycott of settlement products and more.

However, during the summit discussions, Germany and the Czech Republic expressed complete opposition to the move to suspend the free trade agreement, as well as to any other sanctions on the current agenda against Israel. German Foreign Minister Johann Wadephul told the media after the discussions that such measures, “related to the civilian sphere,” were wrong in the German government’s opinion, and pointed to the arms embargo imposed by Germany on equipment that could be used in Gaza as a measure that puts pressure on ending the war.

According to a report on the EUObserver website, Italy and Austria also opposed most of the proposed sanctions, but said they would “be open” to an initiative to continue to deny entry and impose personal sanctions on violent settlers. Hungary and the Czech Republic are also expected to torpedo any such initiative, which requires unanimous consent. The Latvian Foreign Minister also said during the discussions that the war in Gaza reflected Israel’s right to defend itself.

The decision-making mechanisms in the EU require a qualified majority for some decisions on relations with Israel: support from 55% of the EU member states representing at least 65% of its population. This makes Germany and Italy critical for the continued prevention of EU sanctions.

Published by Globes, Israel business news – en.globes.co.il – on September 1, 2025.

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