Listen: EU’s push for Israel sanctions and tariffs falters over Berlin’s position

Today marks the passing of the deadline set by the United Nations General Assembly for Israel to end its illegal presence in the Occupied Palestinian Territory.

Yesterday (17 September), EU ambassadors gathered in Brussels to discuss the European Commission’s latest proposal for sanctions against Israel. Why are EU countries still hesitating to act and who is stalling sanctions once again?

Production: By Europod, in co-production with Sphera Network.

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You can find the transcript here if you prefer reading:

Today marks the passing of the deadline set by the United Nations General Assembly for Israel to end its illegal presence in the Occupied Palestinian Territory. Yesterday, on 17 September, EU ambassadors gathered in Brussels to discuss the European Commission’s latest proposal for sanctions against Israel.

Why are EU countries still hesitating to act and who is stalling sanctions once again?

The plan included suspending parts of the EU-Israel Association Agreement, the free trade deal signed in 2000, which would impose tariffs on around 37% of Israeli exports to the EU, potentially costing Israeli firms up to one billion euros a year. It also called for sanctioning Israeli ministers Bezalel Smotrich and Itamar Ben Gvir, along with settler extremists in the West Bank.

Germany’s ambassador to the EU, Thomas Ossowski, did not take the floor during the debate, a silence read as scepticism. Italy’s ambassador, Vincenzo Celeste, said Rome was open to blacklisting the ministers and settlers but avoided any commitment on trade. Austria, Hungary, Bulgaria, and the Czech Republic also held back, while Spain and Belgium supported moving forward.

Diplomats say Germany and Italy’s positions are decisive: without them, there is no qualified majority in the Council. Israel’s foreign minister Gideon Sa’ar rejected the proposals outright, calling them “morally and politically distorted” and warning of countermeasures.

Meanwhile, Commission President Ursula von der Leyen suspended some bilateral programmes with Israel, such as city partnerships, worth only a few million euros a year, while Israel remains eligible for hundreds of millions of euros in EU research funding under Horizon.

A reminder that a UN commission and other studies describe the situation as genocide, involving starvation, torture, and apartheid. Public pressure is also mounting: in New York, activists hired the Times Square billboard to call for Israel’s exclusion from the 2026 football World Cup, while across Europe, demonstrations have demanded stronger EU action.

Now any move to suspend trade benefits would represent the most significant change in EU-Israel relations in decades.

The issue is not only political but also legal. Some diplomats argue sanctions would require unanimity under EU foreign policy rules. But the Council’s legal service says trade measures can be adopted by a qualified majority, pointing to previous sanctions such as those against Russian fertilisers.

So far, the EU response has been limited. Smaller-scale programmes have been frozen, while larger funding streams and the main trade relationship remain in place.

So, what now?

EU diplomats will continue technical talks on sanctions this week. Foreign ministers are set to discuss the proposals in New York during the United Nations General Assembly.

Belgium, France, Luxembourg, and Malta, along with non-EU countries such as Australia, Canada, and the UK, are expected to use the UN meeting to push for recognition of Palestinian statehood.

For the EU, the key question remains whether Germany will support the proposals. Diplomats say that if Berlin moves, other member states could follow. If not, the sanctions package is unlikely to progress beyond discussions.