The European Union has announced plans to suspend trade preferences with Israel and impose sanctions on senior Israeli officials, citing serious human rights violations in Gaza.
EU foreign policy chief Kaja Kallas said Wednesday that all member states recognize the current situation in Gaza as "untenable," warning that continued violence in both Gaza and the West Bank threatens the chances of a two-state solution.
"The goal of these measures is not to punish Israel but to improve the humanitarian situation in Gaza," Kallas said after a meeting of the European Commission. She criticized Israel's latest military offensive in Gaza City, calling it an escalation that will only worsen civilian suffering.
Kallas noted that public opinion across Europe is increasingly demanding action. "The suffering in Gaza is visible, and people want political steps to bring it to an end," she said.
Maros Sefcovic, EU Commissioner for Trade and Economic Security, confirmed that the proposal targets key elements of the Euro-Mediterranean Agreement, including trade in goods and services, procurement, and intellectual property.
"In practice, this means Israeli imports will lose their preferential access to the EU market and will instead face duties applied to any third country without a trade agreement," Sefcovic explained.
He added that the EU remains Israel's largest trading partner, with goods trade totaling €42.6 billion ($50.4 billion) in 2024 -- nearly a third of Israel's total trade. "The proposed suspension is a carefully considered response to an increasingly urgent situation," he said.
The EU Council will now vote on the measures, which require a qualified majority to pass.
The Commission also announced sanctions targeting Hamas, extremist Israeli cabinet ministers, and violent settlers. These steps require unanimous approval by the European Council.
Dubravka Suica, Commissioner for the Mediterranean, stated that the EU will also suspend approximately €14 million in bilateral funding to the Israeli government. Of that, €4.3 million had already been contracted, while €9.4 million remained unallocated. "The situation in Gaza and the West Bank is unacceptable," she said, stressing the EU's continued support for a two-state solution.
Funds dedicated to combating antisemitism and supporting Jewish cultural initiatives will remain unaffected.
European Commission President Ursula von der Leyen emphasized that while trade concessions and government support will be frozen, cooperation with Israeli civil society and Holocaust remembrance institutions such as Yad Vashem will continue. "The horrific events taking place in Gaza on a daily basis must stop," she said.
Since October 2023, Israel's military campaign in Gaza has killed nearly 65,000 Palestinians -- most of them women and children -- according to local authorities. The sustained bombardment has devastated infrastructure, triggered famine, and spread disease, leaving much of the enclave uninhabitable.