LAST UPDATE | 17 Sep 2025

THE EUROPEAN UNION’S executive arm has suspended its bilateral support for Israel, meaning it has frozen payments worth up to €32 million, citing the dire humanitarian situation in Gaza.

The European Commission, led by President Ursula von der Leyen, has also officially proposed the suspension of parts of the agreement that gives Israel special trade concessions in the EU market, although that measure’s adoption will still come down to a vote among member states.

Israel was set to receive an average of €6 million per year from the EU between 2025 and 2027 from two different funds. Those payments have now been put on hold.

“Concretely, this affects future yearly allocations between 2025 and 2027, as well as ongoing institutional cooperation projects with Israel and projects funded under the Regional EU-Israel cooperation facility,” the Commission said. 

On top of that, the Commission said it will suspend institutional cooperation projects, including twinning programmes and projects under the Regional EU-Israel cooperation facility. Those frozen payments amount to approximately €14 million.

Citizens and member state governments opposed to Israel’s war on the Gaza Strip in Palestine have been calling on the Commission and the EU as a whole to take concrete action for nearly two years but have had no success.

Member states with close ties to Israel, such as Germany, Hungary and Italy, have impeded those efforts to pressure Israel into halting the assault on Gaza, which a UN investigation – alongside experts and NGOs – has concluded amounts to a genocide. 

The Commission has also proposed the EU impose sanctions on extremist Israeli ministers, violent Israeli settlers and the Palestinian militant group Hamas. 

In a statement issued this afternoon, von der Leyen said the Commission had moved to sanction Israel because “The horrific events taking place in Gaza on a daily basis must stop”. 

“There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas. The European Union remains the biggest donor of humanitarian aid and an unwavering champion of the two-state solution,” she said.

“Reflecting these principled commitments, and taking into account serious recent developments in the West Bank, we propose to suspend trade concessions with Israel, sanction extremist ministers and violent settlers, and put bilateral support to Israel on hold, without affecting our work with Israeli civil society or Yad Vashem.”

Yad Vashem is the World Holocaust Remembrance Centre in Jerusalem. 

The recommendations of the college of Commissioners led by President von der Leyen are morally and politically distorted, and it is to be hoped that they will not be adopted as has been the case so far.
Moves against Israel will harm Europe’s own interests.
Israel will continue…

— Gideon Sa'ar | גדעון סער (@gidonsaar) September 17, 2025

In response to the EU’s announcement, Israeli foreign minister Gideon Sa’ar described the Commission’s proposals as “morally and politically distorted” and said he hoped the decisions would be reversed.

He claimed that “moves against Israel will harm Europe’s own interests”.

“Steps against Israel will be answered accordingly, and we hope we will not be required to take them,” he said.

Related Reads

Number of Palestinians killed by Israel's offensive on Gaza passes 65,000

‘Finally’ 

Taoiseach Micheál Martin “strongly welcomed” the Commission’s proposal today, adding that “Ireland has long called for this action”. 

I strongly welcome the Commission’s decision today to propose suspension of parts of the EU’s Association Agreement with Israel.

Ireland has long called for this action. pic.twitter.com/JwzNFtxr8E

— Micheál Martin (@MichealMartinTD) September 17, 2025

Tánaiste Simon Harris also welcomed today’s announcement, saying “the Commission has finally tabled concrete proposals for trade measures against Israel. Today marks a critical turning point”.

“What we now need to see is the Council convened as a matter of urgency to consider these proposals, which Ireland will fully support,” Harris said.

With today’s announcement, von der Leyen has followed through on a pledge she made during her recent State of the Union speech to the EU Parliament. 

Earlier this year, Israel was found to have violated the human rights clauses of its agreement with the EU, but when EU foreign ministers were presented with a suite of potential sanctions to implement in response last July, they failed to agree to any.

In order for the proposal to pass, it needs to receive the support of a qualified majority, meaning at least 55% of the vote (15/27 member states) and it must be supported by states representing at least 65% of the EU citizen population.