EU Considers Suspending Israel Trade Agreement Amid Gaza Conflict, Faces Internal Divisions
September 10, 2025
Ursula von der Leyen announced that the European Commission will propose suspending the trade part of the EU-Israel Association Agreement in response to the Gaza conflict, marking a significant escalation in Brussels' stance against Israel.
This move faces deep divisions among EU member states, with some like Germany opposing sanctions and others such as Spain supporting tougher measures; approval requires a qualified majority of 15 out of 27 EU countries representing at least 65% of the population.
The decision was made because member states could not reach a consensus on sanctions, prompting the EU Commission to act independently by suspending payments, while still emphasizing ongoing cooperation with Israeli civil society and institutions like Yad Vashem.
Von der Leyen also called for increased sanctions on Russia, advocating for a faster phase-out of Russian fossil fuels and discussing the legal and financial complexities of seizing Russian assets to support Ukraine.
She condemned the situation in Gaza as 'catastrophic,' criticized Israeli actions as 'simply unacceptable,' and called for an immediate ceasefire, humanitarian access, and the release of hostages held by Hamas.
The EU’s response also includes plans to establish a donor group for Gaza reconstruction and to use frozen Russian assets to fund Ukraine’s war effort, while maintaining a stance against aiding Hamas through aid misuse.
Von der Leyen faced criticism from the left for her handling of the Gaza crisis and her support for a trade deal with the US, which she defended as necessary for global stability.
She emphasized the need for EU reforms, including moving towards qualified majority voting in foreign policy decisions, to improve the bloc’s ability to act decisively amid geopolitical tensions.
Despite support for Israel, she reaffirmed her friendship with the Israeli people but criticized the Israeli government’s actions that threaten the two-state solution, advocating for peaceful coexistence.
The EU is also responding to international criticism and regional tensions, with condemnations from China and Russia over Israel’s strikes and calls for renewed peace talks.
Germany has nearly halted development cooperation in Gaza, citing the need for a lasting ceasefire, while some EU leaders push for targeted sanctions without damaging civil cooperation.
Overall, the EU’s stance reflects a complex balance of political, humanitarian, and strategic considerations amid ongoing conflicts in Gaza, Ukraine, and broader regional tensions.
Summary based on 19 sources
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Sources

The Guardian • Sep 9, 2025
Von der Leyen under growing pressure to take tougher line with Israel
The Guardian • Sep 10, 2025
Ursula von der Leyen calls for suspension of EU trade with Israel
Deutsche Welle • Sep 10, 2025
Middle East updates: EU suspends Israel payments over Gaza
POLITICO • Sep 10, 2025
Von der Leyen vows to punish Israel’s ‘extremist ministers’ and pause payments