Ursula von der Leyen's announcement during her State of the Union address this month comes just weeks before the second anniversary of the Gaza war. In an unusual rebuke of the Jewish state, the European Commission president criticized the scale of the Israeli military campaign, which, she said, created a "man-made famine" in the Palestinian territory.
Following the 7 October 2023 attacks by Hamas which saw 1,200 people killed and 250 hostages taken, Israel launched a major military operation in the Gaza Strip, which has already caused more than 64,000 deaths, according to data from the Hamas-led government in Gaza.
To force the Tel Aviv government to change its course of action, the European Commission proposed a package of measures, the most impactful of which was the suspension of the trade component of the EU-Israel Association Agreement. It's estimated this would cost €227 million for Israeli exporters.
To be implemented, that sanction requires a qualified majority vote by the 27 member states, which will be difficult to achieve.
"The divisions in Europe are very, very deep. On one side, there are countries that want to move forward with sanctions, that believe Palestine has the right to be a state, that believe in the two-state solution and want more action", said Maïa de La Baume, who's been covering this topic for Euronews.
"On the other side, there are countries that also have historical ties to Israel - Germany, Austria, the Czech Republic - that want to preserve their sacrosanct bond with Israel," she added.
The proposed package also includes halting transfers from the EU budget to the bilateral cooperation program, and sanctions against Israeli ministers for inciting hatred and against violent settlers who cause destruction in the West Bank.
Israeli Foreign Minister Gideon Sa'ar reacted to the European Commission's announcement by saying it was "unacceptable behaviour between partners".
Parliament also adopts resolution amid deep divisions
The European Parliament adopted a resolution (305 votes in favour, 151 against, and 122 abstentions) calling for measures to end the war in Gaza and to find a solution for the Israeli- Palestinian conflict.
Hildegarde Bentele (Germany/EPP), president of the Delegation for Relations with Israel, told Euronews that "this is not the time" to propose sanctions, especially on a trade level.
"In the resolution, we say that there is an improvement in the humanitarian situation. I would prefer that we choose a conditional suspension (of trade), or give an incentive for Israel, rather than a punishment," said Bentele.
By contrast her colleague Lynn Boylan (Ireland/The Left), chair of the Delegation for Palestinian Relations, said: "I believe that if we had taken action earlier, it would have sent a very strong message and probably would have saved thousands of lives."
The EU has historically advocated a two-state solution, with Israel and Palestine coexisting peacefully. Only 10 of the 27 EU countries have recognised Palestinian sovereignty. Spain, Ireland and Slovenia did so after the Gaza war started, and France, Belgium, Malta and Luxembourg recently announced their intention to do the same.
MEP Bentele says this is a risky step: "We must ensure that this new State of Palestine recognizes Israel's right to exist, because that is the main problem in the region, and that it does not harbor terrorists."
MEP Boylan welcomed the move, however, saying: "I think the European Union should recognize the State of Palestine, but for me the main priority must be to end the killings, because we need a Palestine of Palestinians to have a state."
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Journalist: Isabel Marques da Silva
Content production: Pilar Montero López
Video production: Zacharia Vigneron
Graphism: Loredana Dumitru
Editorial coordination: Ana Lázaro Bosch and Jeremy Fleming-Jones
