Ursula von der Leyen, President of the European Commission, made this announcement at her annual State of Union address to European Parliament this Wednesday in response to Israel’s response to Gaza’s humanitarian crisis. She condemned it as a man-made famine and demanded immediate measures taken to alleviate it.

Details of Suspension Von der Leyen stated that the European Union will suspend all bilateral financial support to Israel with the exception of civil society organizations and Yad Vashem Holocaust memorial. She pointed out that this decision demonstrates their dedication to human rights as well as their determination to hold those accountable for creating humanitarian crises like Gaza accountable.
Von der Leyen also proposed suspending some provisions of the EU-Israel Association Agreement, which gives Israel preferential trade terms with Europe. He hopes that such action would apply economic pressure on Israel to stop actions that undermine two-state solution and violate international law. (Sources). [The Guardian].
Proposed Sanctions The European Commission is also planning to impose targeted sanctions against Israeli officials seen as responsible for extremist actions and settlement expansion in the West Bank. Von der Leyen singled out National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich as key figures whose actions contributed to an escalation in violence as well as to diminished prospects for peace, according to The Times of Israel.
As von der Leyen’s proposals mark a dramatic departure in how the EU approaches Israeli-Palestinian conflicts, these measures also face substantial opposition among EU member states. Countries such as Germany and Hungary have expressed reservations over suspending trade agreements and imposing sanctions, due to concerns for diplomatic relations as well as any possible effects on EU-Israel cooperation.
Financial Times
The EU’s decision to suspend financial aid and propose sanctions stems from growing pressure from within the bloc to take a firmer stance against Israel’s actions in Gaza. But reaching consensus among all 27 member states remains uncertain and whether these measures are successful will depend on whether EU leaders come together behind a single policy agenda.

Reactions Israel has strongly denounced the EU’s actions, with Foreign Minister Gideon Saar labeling their decisions “regrettable” and accusing the EU of aligning itself with Hamas and other opponents of Israel. Saar also asserted that such decisions undermine Israel’s right to self-defense while sending an unfair message throughout the region.
However, Palestinian representatives have welcomed EU measures as necessary steps towards holding Israel accountable for its actions in Gaza. They have called for further international pressure in order to safeguard Palestinian civilians and promote an equitable peace process.

As Gaza continues to deteriorate, the EU must negotiate between maintaining diplomatic ties with Israel while upholding human rights standards and international law – and forging an effective response that unifies Europe against crisis. The coming weeks will provide us with our first insight as to whether they succeed.