EU countries push for trade limits on illegal Israeli settlements, setting up showdown with Commission
A group of EU member states, including Belgium, the Netherlands, and Spain, is seeking a majority to force the European Commission to propose trade restrictions on illegal Israeli settlements in the West Bank. The issue is set to dominate a meeting of EU foreign ministers in Brussels on Monday.
BRUSSELS — A coalition of EU countries, led by Belgium, the Netherlands, and Spain, is pressing for the European Commission to introduce trade limitations on illegal Israeli settlements, escalating a standoff over the bloc's Middle East policy. Four diplomats briefed on the plans confirmed the effort but declined to name all supporting nations.
The fight is increasingly pitting EU institutions against each other and dividing member states. On one side are countries advocating tougher action, backed by EU foreign policy chief Kaja Kallas. On the other are Ursula von der Leyen's Commission and nations like Germany and the Czech Republic.
Foreign ministers meeting in Brussels on Monday will not decide on tariffs or import bans. The immediate goal is whether the pushing countries can secure a majority to demand a formal Commission proposal for later voting.
Any resulting trade measure would have limited economic impact. Trade with illegal West Bank settlements accounts for about 0.5% of the EU's overall trade with Israel, according to a confidential Commission discussion paper seen by POLITICO.
However, the issue has ballooned to dominate the foreign ministers' agenda, overshadowing other topics like the 21st sanctions package against Russia.
The German-led Commission has resisted proposing new trade measures against the settlements, arguing similar proposals have already been rejected. The Commission is flanked by Prague and Berlin, with Germany intending to veto or abstain on any vote concerning tariffs on Israel.
Kallas, who is to preside over Monday's meeting, has publicly urged the Commission to come up with new trade measures. She is currently locked in a dispute with Israeli Foreign Minister Gideon Sa'ar over reports she used the word "apartheid" to describe Israel. Sa'ar said on June 18 he would cut off all contact with Kallas pending an apology or clarification.
Speaking to reporters ahead of the meeting, three diplomats suggested the Commission is deliberately avoiding putting forward measures that can quickly be put to a vote. In response to a direct request from EU leaders, the Commission circulated a paper outlining options like a licensing system and "prohibitive tariffs," but it is not a formal proposal.
A key dispute is whether the measures are trade policy or part of the Common Foreign and Security Policy (CFSP). The Commission and Berlin argue they are CFSP, requiring unanimous support. Countries pushing for tougher measures disagree, citing a European Council legal service opinion that only a qualified majority is needed.
Critics of von der Leyen say she is deliberately stalling ahead of Israeli elections in October. EU officials privately acknowledge that any new sanctions could be weaponized by extremist figures like National Security Minister Itamar Ben Gvir.
