World

EU’s Israel Sanctions: How Brussels Plans to Curb Trade and Target Extremists

EU proposes sanctions on Israeli officials and trade suspension, impacting €6B in exports, due to Gaza conflict.

September 17, 2025, 10:09 AM

The main chamber of the European Parliament in Brussels, with delegates seated and flags displayed

The main hall of the European Parliament in Brussels, Belgium, with flags of member states and a central podium. By MDL.

Executive Summary

The European Commission has proposed extensive measures against Israel, including sanctions on ministers and extremist settlers, and the suspension of preferential trade access for billions of euros worth of Israeli exports.

The proposed sanctions target leading far-right Israeli officials, three extremist settlers, and several organizations, alongside a €6 billion trade suspension impacting 37% of Israel’s total exports to the EU, and also include sanctions on 10 senior Hamas officials.

Passage of these proposals is uncertain due to differing approval requirements (qualified majority for trade, unanimity for individual sanctions) and staunch opposition from several EU countries, including Germany and Hungary.

The Story So Far

The European Commission’s proposed measures against Israel, including sanctions on ministers and extremist settlers and the suspension of preferential trade access, are a direct response to the ongoing conflict in Gaza and the severe humanitarian crisis, reflecting the EU’s commitment to acting when its principles are violated. These proposals specifically target far-right Israeli officials and extremist settlers, some of whom have previously faced international condemnation, alongside Hamas officials whose October 2023 attack triggered the current conflict.

Why This Matters

The European Commission’s proposed sanctions against Israeli ministers and extremist settlers, alongside the suspension of preferential trade access for €6 billion in Israeli exports, represents the EU’s most extensive effort to pressure Benjamin Netanyahu’s government regarding the Gaza conflict. However, the high bar for approval, requiring unanimous backing for individual sanctions and a qualified majority for trade measures, coupled with strong opposition from key member states like Germany and Hungary, makes the actual implementation of these significant proposals highly uncertain, highlighting persistent divisions within the bloc.

Who Thinks What?

The European Commission believes that the proposed significant measures against Israel, including sanctions on ministers and extremist settlers, and the suspension of preferential trade access, are “appropriate and proportionate” steps necessary due to the humanitarian situation in Gaza and to demonstrate the EU’s readiness to act when principles are violated.

Several EU countries, notably Germany and Hungary, express staunch opposition to the Commission’s proposals, and the EU’s top diplomat, Kaja Kallas, is skeptical that member states will ultimately endorse them, citing persistent political divisions.

The European Commission has proposed significant measures against Israel, including sanctions on ministers and extremist settlers, alongside the suspension of preferential trade access for billions of euros worth of Israeli exports. This move, announced on Wednesday, represents Brussels’ most extensive effort to pressure Benjamin Netanyahu’s government regarding the ongoing conflict in Gaza and the humanitarian crisis.

Commission’s Proposals and Rationale

European Commissioner for Trade Maroš Šefčovič stated regret over the necessity of these steps, but deemed them “appropriate and proportionate” given the humanitarian situation in Gaza. A senior Commission official emphasized the importance of demonstrating the EU’s readiness to act when principles are violated.

The proposed trade suspension would impact approximately €6 billion worth of Israeli goods, accounting for 37% of Israel’s total exports to the EU. This measure requires approval from a “qualified majority” of EU countries, meaning 15 countries representing at least 65% of the bloc’s population.

Individual sanctions target leading far-right Israeli officials, including Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir. These individuals have previously been declared unwelcome by several Western nations. Three extremist settlers and several organizations active in the Israeli-occupied West Bank are also included in the proposed sanctions.

Additional Sanctions and Exemptions

Brussels also proposed sanctions on 10 senior officials of Hamas, whose October 2023 attack triggered the current conflict. Unlike the trade measures, the proposed sanctions on Israeli ministers and settlers, as well as those on Hamas officials, require unanimous backing from all 27 EU member states.

Commissioner for the Mediterranean Dubravka Šuica confirmed that EU funds allocated to Israeli civil society organizations, including those combating anti-Semitism, remain unaffected by these proposals.

Expected Obstacles to Approval

Despite the Commission’s proposals, their passage is uncertain due to staunch opposition from several EU countries, including Germany and Hungary. The EU’s top diplomat, Kaja Kallas, expressed skepticism about the ultimate endorsement of these proposals by member states, noting that “the political lines are very much in the place where they have been so far,” even as public opinion shifts.