Overview

• In her State of the Union speech, Ursula von der Leyen said the Commission will propose sanctions on extremist Israeli ministers and violent settlers and seek a partial suspension of the trade chapter of the EU‑Israel association agreement.
• The Commission will pause bilateral payments to Israel while preserving support for Israeli civil society and funding for Yad Vashem.
• Brussels will set up a Palestine Donor Group next month to coordinate Gaza reconstruction efforts.
• EU foreign policy chief Kaja Kallas said the executive’s options are ready but national governments remain split, and diplomats say securing a qualified majority—especially with Germany still unconvinced—will be challenging.
• Israel’s government condemned the remarks, with Foreign Minister Gideon Saar calling von der Leyen’s comments regrettable, as pressure grows in Europe following months of civilian suffering and a recent uptick in aid deliveries to Gaza.