Brussels, Belgium: European Commission President Ursula von der Leyen has announced plans to sanction extremist Israeli ministers, partially suspend the EU’s trade association agreement with Israel, and halt bilateral EU support to the Israeli government, in response to the worsening humanitarian crisis in Gaza.
“What is happening in Gaza has shaken the conscience of the world,” von der Leyen told the European Parliament on Wednesday during her annual State of the Union address in Strasbourg, a move that underscores growing outrage in Europe over Israel’s war in Gaza, Reported Reuters.
“Man-made famine can never be a weapon of war. For the sake of the children, for the sake of humanity, this must stop.”
The proposed measures include halting bilateral EU support to the Israeli government—while preserving aid to civil society and Holocaust memorial programmes—and introducing targeted sanctions on violent settlers and hardline cabinet members in Israel. Brussels would also seek a partial suspension of the EU-Israel association agreement, a key trade pact.
Von der Leyen’s announcement comes amid mounting criticism from EU lawmakers, large pro-Palestine demonstrations across Europe, and even dissent from within the Commission’s own staff. She accused Israel of “financially suffocating the Palestinian Authority” and accelerating settlement expansion, warning this was a “clear attempt to undermine the two-state solution.”
But the path forward is fraught. EU sanctions require unanimity among member states, and countries such as Hungary and Germany remain opposed, arguing punitive steps could cut communication with Tel Aviv. Trade measures would require a weighted majority.
“We cannot afford to be paralysed,” von der Leyen said, urging governments to “take our own responsibilities.”
The Commission president also pledged to form a new Palestine donor group with regional partners to support Gaza’s reconstruction, insisting the two-state solution remains the “only realistic peace plan.”
Her remarks drew a standing ovation from left-wing MEPs, many of whom wore red to protest against Israel’s conduct in Gaza. Israel’s military campaign has devastated the enclave since Hamas’s October 7, 2023, attack, leaving tens of thousands dead and pushing much of Gaza’s population to the brink of famine.
It is unclear how much money the commission can suspend on its own. According to a spokesperson, most of its funding in Israel goes towards civil society and humanitarian initiatives, Arab News Reported.
Von der Leyen sharply criticised the Israeli government for its “clear attempt to undermine the two-state solution” through the “financial suffocation of the Palestinian Authority” and expansion of settlements in the West Bank.
“We must not let this happen,” she said. “The only realistic peace plan is based on two states.”
