DAILY NEWS Brussels, 17 September 2025
DAILY NEWS
Brussels, 17 September 2025
Commission proposes suspension of trade concessions with Israel and sanctions on extremist ministers of the Israeli government and violent settlers
Following the announcement of President von der Leyen in her State of the Union address, the European Commission presented today its proposal to the Council to suspend certain trade-related provisions of the Association Agreement between the EU and Israel (“the Agreement”) as well as its proposals for sanctions on Hamas, extremist ministers and violent settlers.
The Commission is also putting on hold its bilateral support to Israel, with the exception of support to civil society and Yad Vashem. 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 proposals follow a review of Israel's compliance with Article 2 of the Agreement, which found that actions taken by the Israeli government represent a breach of essential elements relating to respect for human rights and democratic principles. This entitles the EU to suspend the Agreement unilaterally.
Specifically, this breach refers to the rapidly deteriorating humanitarian situation in Gaza following the military intervention of Israel, the blockade of humanitarian aid, the intensifying of military operations and the decision of the Israeli authorities to advance the settlement plan in the so-called E1 area of the West Bank, which further undermines the two-state solution.
European Commission President, Ursula von der Leyen, said: “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. 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.”
The suspension concerns the core trade-related provisions of the Agreement, and in practice means that imports from Israel will lose their preferential access to the EU market. These goods will therefore be charged duties at the level applied to any other third country with whom the EU has no free trade agreement.
Next steps
Suspension of trade-related provisions
The Commission is proposing a Council decision on the suspension of certain trade-related provisions of the Agreement that fall within the Union's common commercial policy.
The Council needs to adopt the decision with a qualified majority.
The decision will enter into force on the date of its adoption.
Once the decision is adopted, the EU-Israel Association Council will be notified about the suspension. The suspension will take effect 30 days after the notification to the Association Council.
Sanctions against Hamas, extremist ministers of the Israeli government and violent settlers
In specific terms, the package consists of 4 draft legal acts with 9 listing proposals against the ministers and the settlers (under the EU Global Human Rights Sanctions Regime), as well as a reinforced package of listings against 10 members of the Hamas politburo, based on a new listing criterion under the Hamas Sanctions Regime.
The Council now needs to approve the decision by unanimity.
Background
Following the recent decision by Israel to introduce a blockade to the access of humanitarian aid to Gaza, the humanitarian situation has deteriorated to an unprecedented and unsustainable level, driven by ongoing bombardments, military operations, mass displacement, and the collapse of basic services.
The EU High Representative presented to the Foreign Affairs Council of 23 June 2025 a review which concluded that there are indications that Israel would be in breach of Article 2 of the the Euro-Mediterranean Agreement, which establishes respect for human rights and democratic principles as an essential element of that Agreement.
Violation of Article 2 amounts to a serious material breach of that Agreement. The European Union has the right to respond to such a breach in a way that is proportionate and in view of promoting the end of the violations. Given the special urgency of the situation, the EU can act without first taking recourse to the Association Council established under the Agreement.
In her 2025 State of the Union address on 10 September 2025, President of the European Commission Ursula von der Leyen announced that the European Commission would propose a partial suspension of the Association Agreement on trade-related matters.
The Euro-Mediterranean Agreement establishes an association between the European Communities and their Member States, of the one part, and the State of Israel, of the other part.
Article 2 of the Euro-Mediterranean Agreement provides that “relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect for human rights and democratic principles, which guides their internal and international policy and constitutes an essential element of this Agreement”.
EU-Israel trade
The EU is Israel's biggest trading partner, accounting for 32% of Israel's total trade in goods with the world in 2024. Israel is the EU's 31st largest trading partner.
Total trade in goods between the EU and Israel in 2024: €42.6 billion.
EU imports from Israel were worth €15.9 billion, led by:
The EU's exports to Israel amounted to €26.7 billion and were dominated by:
Trade in services between the EU and Israel amounted to €25.6 billion in 2023 (the EU imports €10.5 billion, and exports €15.1 billion).
EU's bilateral support to Israel
The EU's financial support to Israel is covered by the Neighbourhood, Development and International Cooperation Instrument (NDICI) Global Europe (NDICI-GE) for the period 2021 to 2027. In this context, Israel was set to receive an average of €6 million per year under the current MFF between 2025 and 2027.
In addition, the EU will equally put on hold the institutional cooperation projects, including twinning programmes and projects under the Regional EU-Israel cooperation facility benefitting Israel in the region in the context of the Abraham Accords. The amount to be put on hold is approximately €14 million.
Sanctions against violent settlers
Under the EU Global Human Rights Sanctions Regime, the Council has listed so far nine individuals and five entities linked to violent extremism in the West Bank and East Jerusalem, as well as the blocking of humanitarian aid into Gaza.
On 7 December 2020, the Council established a Global Human Rights Sanctions Regime, which applies to acts such as genocide, crimes against humanity and other serious human rights violations or abuses (e.g. torture, slavery, extrajudicial killings, arbitrary arrests or detentions). The EU Global Human Rights Sanctions Regime underscores the EU's determination to enhance its role in addressing serious human rights violations and abuses worldwide. Achieving the effective enjoyment of human rights by everyone is a strategic goal of the Union. Respect for human dignity, freedom, democracy, equality, the rule of law and human rights is a fundamental value of the Union and of its common foreign and security policy.
In its conclusions of 27 June 2024, the European Council reiterates its strongest condemnation of the brutal terrorist attacks conducted by Hamas and other terrorist groups against Israel on 7 October 2023. The European Council strongly condemned the ongoing extremist settler violence in the West Bank, including East Jerusalem, and invited the Council to take work forward on further restrictive measures against extremist settlers. The European Council also called for safe access to the holy sites and for the Status Quo to be upheld. Lastly, the European Council condemned the Israeli government's decisions to further expand illegal settlements across the occupied West Bank and urged Israel to reverse these decisions.
For More Information
Commission proposal
EU-Israel relations (EEAS)
EU-Israel Trade relations
EU-Israel relations (DG MENA)
Euro-Mediterranean Agreement
Quote(s)
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. 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.
Ursula von der Leyen, President of the European Commission
We all agree that the situation in Gaza continues to head in the wrong direction. We must leverage the tools at our disposal to pressure the Israeli government into changing course. Among the options on the table, suspending trade concessions and imposing sanctions on extremist ministers, violent settlers, and Hamas operatives would send a strong message from the European Union: this war must end, the suffering must stop, and the hostages must be released. The next crucial step is securing support from our Member States to implement this proposal.
Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission
We are putting on hold all bilateral financial support to the Israeli government. We continue to advocate for a Two-State solution - one based on a secure Israel and a viable Palestinian Authority. To help make this possible, we are supporting the Palestinian reform process with substantial funding, amounting to €1.6 billion over the next two years. Yet our funding alone is not sufficient. The upcoming Palestine Donor Group will serve as a platform to catalyse efforts of regional and international partners. We invite others to join us and pledge their support.
Dubravka Šuica, Commissioner for the Mediterranean
European Commission Appoints Panayiotis Pourgourides as Head of Representation in Nicosia
Today, Panayiotis Pourgourides has been appointed as new Head of the European Commission Representation in Nicosia, Cyprus. In this function, he will act as the official representative of the European Commission in Cyprus under the political authority of President Ursula von der Leyen. The date of effect for this appointment will be determined later.
Mr Pourgourides, a Cypriot national with a strong background in international relations, brings extensive experience from a career spanning European affairs and national politics. Over the years, he has developed strong skills in strategic insight, stakeholder engagement, policy coordination and diplomacy, which are directly relevant for representing the Commission in Cyprus. His professional experience has given him a deep understanding of how to navigate complex communication environments, build constructive relationships with a wide range of actors, and communicate effectively across different levels of governance. These qualities, combined with his vast knowledge of European institutions, make him particularly well suited to lead the Commission's work in Cyprus.
Most recently, Mr Pourgourides served as Member of Cabinet of Commissioner Stella Kyriakides. Prior to joining the Commission, he worked in the House of Representatives of the Republic of Cyprus and as Secretary of the Cyprus Parliamentary Delegation to the Parliamentary Assembly of the Council of Europe.
The Commission maintains Representations in all capitals of EU Member States, and Regional Offices in Barcelona, Bonn, Marseille, Milan, Munich and Wroclaw. The Representations are the Commission's eyes, ears and voice on the ground in EU Member States. They interact with national authorities, stakeholders and citizens, and inform the media and the public about EU policies. Heads of Representations are appointed by the President of the European Commission and are her political representatives in the Member State to which they are posted.
Welcome to the website of the European Commission Representation in Cyprus
EU sets out new strategy to reinforce prosperity and security with India
Today, the EU is proposing a new strategic agenda to raise bilateral relations with India to a higher level.
The European Commission and the High Representative adopted a Joint Communication outlining a ‘New Strategic EU-India Agenda' marking a significant milestone in EU-India relations. This initiative, announced by President von der Leyen in her Political Guidelines for 2024-2029, aims to deepen, broaden, and better coordinate bilateral cooperation, enhance prosperity and security for both partners and help tackle major global challenges.
President Ursula von der Leyen said “Now is the time to focus on reliable partners and double down on partnerships rooted in shared interests and guided by common values. With our new EU–India strategy, we are taking our relationship to the next level. Advancing trade, investment and talent mobility. Strengthening our joint economic security. Advancing the clean transition and driving innovation together. Deepening our industrial cooperation in defence. Europe is already India's biggest trading partner and we are committed to finalising our Free Trade Agreement by the end of the year. Europe is open for business. And we are ready to invest in our shared future with India.”
Following the College's visit to India in February, the Joint Communication outlines the EU's strategic vision for enhancing cooperation with New Delhi. It identifies five areas of shared interest and complementary strengths, building on existing ties while addressing areas that present potential for increased engagement. Amid shifting geopolitical realities, closer EU–India relations are increasingly vital for strengthening economic growth and security, and diversifying supply chains in response to today's uncertain global order. Beyond the bilateral dimension, the new strategic agenda highlights EU-India joint engagement on global issues and with third partners, reflecting India's growing global influence.
Prosperity, sustainability, technology and innovation
The Joint Communication identifies significant untapped potential in trade and investment, outlining strategies to strengthen commercial ties, particularly finalising the ongoing negotiations on a Free Trade Agreement (FTA). It proposes reinforcing supply chains while promoting critical emerging technologies and engagement on digital issues, with particular attention to strengthening economic security within the Trade and Technology Council (TTC). This new strategy also proposes deepening tech cooperation, including a potential EU-India Startup partnership, and invites India to associate with Horizon Europe programme. It suggests ambitious initiatives for decarbonisation and the clean transition, such as intensifying cooperation on renewables, developing green hydrogen capabilities and expanding green finance. Moreover, it highlights opportunities to jointly strengthen food security, and health, climate and disaster resilience.
Security and defence
The Joint Communication takes forward the proposed EU-India Security and Defence Partnership. This will enhance strategic consultations and joint initiatives, including on crisis management, maritime security, cyber defence, and counterterrorism, and foster defence industrial cooperation, focusing on boosting production and technological capabilities, securing supply chains, and driving innovation. Launching negotiations for a Security of Information Agreement to facilitate classified information exchange will support closer security and defence cooperation. Closer cooperation on the Indo-Pacific, addressing hybrid threats, space security, and intensifying engagement on Russia's war against Ukraine, shadow fleets, and sanctions are other areas of focus.
Connectivity and global issues
The Joint Communication emphasises strengthening regional connectivity initiatives, such as the India-Middle East-Europe Economic Corridor (IMEC) and advances Global Gateway and EU-India trilateral cooperation with and in third countries. It aims to enhance cooperation with India in multilateral forums and encourage India to advance international law, multilateral values and global governance.
Enablers across pillars
The Joint Communication prioritises maximising interaction and strengthening EU-India coordination at all levels. This includes skills mobility with the pilot European Legal Gateway Office to facilitate labour mobility. It proposes developing a comprehensive mobility cooperation framework covering study, work, and research. In addition to deeper engagement with civil society, youth and think tanks, further reach out to the businesses community is supported by the proposal for an EU-India Business Forum.
Building on the proposals outlined in the Joint Communication, the EU stands ready to work with India to develop a joint comprehensive strategic agenda that is driven by shared priorities and delivers mutual benefits. It seeks to complement the engagement of EU Member States, with adoption of Council Conclusions foreseen at the Foreign Affairs Council in October.
For more information
Joint Communication
Factsheet
Now is the time to focus on reliable partners and double down on partnerships rooted in shared interests and guided by common values. With our new EU–India strategy, we are taking our relationship to the next level. Advancing trade, investment and talent mobility. Strengthening our joint economic security. Advancing the clean transition and driving innovation together. Deepening our industrial cooperation in defence. Europe is already India’s biggest trading partner and we are committed to finalising our Free Trade Agreement by the end of the year. Europe is open for business. And we are ready to invest in our shared future with India.
India is one of the most important players in the world today and a natural partner for the European Union. There are many areas where our interests, strengths and political will align. Boosting our collaboration – which we are proposing today – will benefit the security and prosperity of citizens and businesses on both sides. There are areas where we disagree. Ultimately our partnership is about defending a rules-based international order. Our negotiations will address these challenges.
Commission and European Investment Fund invest €30 million in Sienna Hephaistos Private Investments to improve access to finance for SMEs and midcaps in the defence sector
Today, the European Commission and the European Investment Fund (EIF) granted Sienna Hephaistos Private Investments S.C.A. SICAV-RAIF €30 million under the InvestEU Defence Equity Facility (DEF). Managed by Sienna Investment Managers France, this new fund becomes the first private credit fund in Europe to finance exclusively small and medium-sized enterprises (SMEs) and midcaps in the defence sector.
In response to the war in Ukraine and ongoing geopolitical instability, European security and defence needs have increased dramatically, highlighting supply chain vulnerabilities. Many specialised SMEs and small midcaps, often family-owned, provide critical components and technologies, but face limited access to bank financing.
This new fund will bridge the financing gap by providing tailor-made debt solutions that enable companies to expand production build up inventories, and support industry consolidation. By easing supply chain bottlenecks, the fund directly contributes to scaling up European defence production and reinforcing Europe's strategic autonomy.
At first closing, the fund secured commitments from a strong base of institutional investors, with EIF acting as the cornerstone investor. This investment supports the EU's strategic priority of strengthening Europe's security, sovereignty and defence capabilities by improving access to financing for critical suppliers in the European defence value chain.
The European Investment Fund (EIF) is part of the European Investment Bank Group (EIBG). Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them access finance. Under the InvestEU Programme, EIF implements several mandates on behalf of the European Commission, including the Defence Equity Facility, a EUR 175 million-instrument designed to support European private funds investing in defence technologies. The Defence Equity Facility is funded by the European Defence Fund (EDF), Commission's programme to strengthen the European defence technological and industrial base through the support to defence R&D. More information on the Defence Equity is available here.
Sienna Hephaistos Private Investments is structured as a Luxembourg SCA SICAV-RAIF. It provides private debt financing to SMEs and small midcaps across the European defence value chain, addressing critical supply chain bottlenecks and supporting industry growth in a context of rising European defence spending.
In light of the current security environment, facilitating access to finance for defence SMEs and mid-caps is a priority for the European Commission, as it is essential for strengthening our defence readiness.
Andrius Kubilius, Commissioner for Defence and Space