The European Union unveiled its most stringent measures yet against Israel on Wednesday, proposing tariffs on select Israeli imports and sanctions targeting Israeli officials, settlers, and Hamas leaders to compel an end to the 23-month war in Gaza. EU foreign policy chief Kaja Kallas emphasised that the actions aim to pressure the Israeli government to halt operations, alleviate humanitarian suffering, and secure the release of all hostages. "We are proposing these measures not to punish Israel or the Israeli people, but to really try to pressure the Israeli government to change course," Kallas stated, amid reports of Israeli forces advancing deeper into Gaza City, prompting mass evacuations.
The proposal includes freezing assets and imposing EU travel bans on 10 Hamas leaders, unnamed Israeli settlers, and two cabinet ministers: National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, both far-right figures criticised for promoting settlement expansion in the West Bank. On the trade front, the EU plans to suspend zero-tariff preferences under its Association Agreement with Israel, applying World Trade Organisation rates of 8% to 40% on 37% of the €15.9 billion in annual Israeli goods imported, generating approximately €230 million (USD 166 million) in tariffs. Additionally, €32 million (USD 37.5 million) in bilateral funds would be immediately halted. EU trade representative Maroš Šefčovič described the partial suspension as a "carefully considered response" to the escalating crisis.
Israel swiftly rebuffed the initiative, with Foreign Minister Gideon Saar asserting in a letter to European Commission President Ursula von der Leyen that "pressure through sanctions will not work" and that Israel would not yield on security matters. The EU remains divided on the issue, with uncertainty over whether a majority of the 27 member states will approve the measures, reflecting ongoing splits since the conflict began. Protests against Israel's actions have surged across Europe, highlighting frustrations with Brussels' limited influence on aid access and military restraint.
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The war erupted on October 7, 2023, following a Hamas-led attack on Israel that killed about 1,200 people and abducted 251 hostages. Gaza health officials report nearly 65,000 Palestinian deaths amid widespread destruction and famine risks, though Israel denies starvation claims and insists sufficient aid enters. The EU's shift follows a June diplomatic review finding Israel in violation of the Association Agreement's human rights clause amid intensified West Bank violence. While arms exports remain unaffected, the measures could strain Israel's economy, where the EU accounts for its largest trade partner.
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