Overview

• At a Madrid press conference, Friedrich Merz acknowledged clear differences with Pedro Sánchez on Gaza and said Germany will not recognize Palestinian statehood for now.
• Merz rejected describing events in Gaza as genocide and reiterated that Germany stands with Israel while calling Israeli military actions disproportionate.
• Berlin will settle its position next week ahead of the Oct. 1 informal EU meeting after Ursula von der Leyen proposed stripping trade preferences and targeting hardline Israeli officials.
• The Commission’s trade step would cover about 37% of Israeli exports to the EU and includes potential listings of Bezalel Smotrich and Itamar Ben-Gvir for alleged rights abuses and incitement.
• Sánchez endorsed the EU plan and pointed to Spain’s own measures, including a full arms embargo, entry bans and support for South Africa’s ICJ case, as protests in Spain have intensified over Israeli participation in sports.