Overview

• Announcing a policy shift in her State of the Union address, Ursula von der Leyen said the Commission will propose sanctions on extremist Israeli ministers and violent settlers.
• The Commission will seek a partial suspension of the trade chapter of the EU‑Israel Association Agreement, which would remove some market preferences for Israeli goods.
• Brussels will pause Commission‑managed bilateral payments to Israel while maintaining support for Israeli civil society groups and Yad Vashem.
• A Palestine Donor Group is set to launch next month with a dedicated instrument to support Gaza’s reconstruction.
• Israeli Foreign Minister Gideon Saar condemned the move as echoing false propaganda, while rights groups and some EU lawmakers welcomed tougher action but called it late, underscoring deep divisions that previously stalled measures such as limits on Israel’s access to the Horizon research program.