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EU Proposes Partial Suspension of Israel’s Innovation Council Funding

Citing breaches of human rights obligations in Gaza, the Commission is working to secure a qualified majority after ambassadors failed to back the measure.

Palestinians gather at the site of an overnight Israeli air strike on a house, in Khan Younis in the southern Gaza Strip, July 28, 2025. REUTERS/Ramadan Abed/File Photo
Palestinians carry aid supplies, that entered Gaza on trucks through Israel, in Beit Lahia, in the northern Gaza Strip July 29, 2025. REUTERS/Dawoud Abu Alkas/File Photo
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Overview

  • On July 28, the European Commission formally invoked Article 79 of the EU-Israel Association Agreement to freeze Israel’s participation in the European Innovation Council segment of Horizon Europe.
  • The proposal targets Israeli entities in the €10.1 billion EIC Accelerator programme, which funds start-ups with potential dual-use technologies.
  • Commission officials argue that announced humanitarian pauses and aid commitments have fallen short as Gaza faces severe malnutrition and water insecurity.
  • EU ambassadors on July 29 did not reach the qualified majority needed to implement the suspension, with Germany’s undecided stance viewed as pivotal.
  • Brussels diplomats plan to continue lobbying member states through August, although final approval may be delayed by the summer recess.