Overview

• The proposal would suspend parts of the EU–Israel trade framework, with officials saying roughly 37% of preferential trade—largely agricultural goods—would lose reduced tariffs.
• EU plans include blocking about €6 million per year in future allocations and pausing roughly €14 million for institutional projects, while safeguarding cooperation with civil society and Yad Vashem.
• The political track targets so‑called extremist ministers, settlers accused of violence, and members of Hamas, echoing European Parliament calls that singled out Bezalel Smotrich and Itamar Ben‑Gvir.
• Israel’s foreign minister Gideon Saar urged Ursula von der Leyen not to proceed, arguing sanctions would fail and could strengthen Hamas.
• Kaja Kallas said the aim is to ease Gaza’s humanitarian crisis and secure the release of hostages as fighting intensifies in Gaza City, not to punish Israel.