Pressure on the European Union to suspend tariff-free trade with Israel has eased following fears such a move might jeopardise the tentative ceasefire in Gaza, diplomatic sources have said.
Foreign ministers from the bloc’s 27 states are to meet on Monday when there are expected to be calls to pause efforts to sanction Israel for its military campaign in Gaza.
Pressure had been building on Italy and Germany to lift their opposition to suspending an EU-Israel free-trade deal before the US brokered a ceasefire between Israel and Hamas militants in Gaza.
The EU was short of the weighted majority needed to cut temporarily Israel’s preferential access to the European market, with the support of either Rome or Berlin needed to approve the proposal.
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Officials involved in discussions in Brussels believe the momentum to suspend the trade deal, which would be a serious blow to Israel, has stalled, given the recent ceasefire.
“We also have to make sure that while we keep up pressure we don’t undermine the process either,” said one diplomat from an EU state that previously backed the trade suspension.
Several national capitals feel the EU should refrain from pushing for sanctions on Israel in light of the tentative ceasefire.
However, it is understood there is broad support to keep the proposed measures in reserve to maintain some political leverage.
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“The point is to keep them on the table for now. For the moment there are still a lot of unknowns, so it’s not the moment to [bring] the pressure down, but it’s also not the moment to increase it,” the diplomat said, speaking on the condition of anonymity.
There was a broad agreement against pushing forward with penalties, they said. “But we should not withdraw what is on the table,” they said.
Hungary, the Czech Republic, Austria, Germany and Italy have been Israel’s biggest defenders inside the EU, frequently opposing sanctions and watering down joint EU statements criticising the war in Gaza.
It is understood Germany and the Czech Republic will resist any suggestion at EU-level that the trade sanctions be pursued.
Diplomats from states backing Israel are expected to argue now is not the time for any moves that could inflame tensions.
“We are realistic. There were already member states that were not enthusiastic about these proposals. We feel they will be even less enthusiastic,” a senior EU diplomat involved in negotiations said.
“We think that we need to maintain pressure on all parties. The measures should not be taken off the table.”
Foreign ministers meeting in Luxembourg next week are to discuss how the EU might secure a seat at the table in future talks about Gaza postwar plans.
At least 67,000 Palestinians were killed in Israel’s two-year ground invasion and aerial bombardment of the Gaza Strip, which levelled much of the enclave and saw a famine declared in parts of Gaza City.
The war began after Hamas attacked Israel on October 7th, 2023, killing 1,200 people and taking about 250 hostages.
A statement signed by more than 400 former EU ambassadors, senior officials and national diplomats has called for an end to the “siege conditions” in Gaza and a lasting two-state solution.
The influential group of former diplomats and officials called on the EU to act against “extremists on both sides whose actions jeopardise the establishment of a future Palestinian state”.
The statement welcomed US president Donald Trump’s plan that had led to a ceasefire and said “maximum international pressure” was needed to ensure a sustainable peace took hold.
Adding his name to the signatories, former minister for foreign affairs Simon Coveney said the opportunity to permanently end the conflict between Israel and Palestine had to be “seized at all costs”.
