EU Intensifies Criticism of Israel Over West Bank Settlements and Threatens Trade Suspension

European Commission President Ursula von der Leyen sharply criticized Israel's policies in the West Bank on July 3, 2026, condemning the continued expansion of Israeli settlements as unacceptable. She described the violence used to promote settlement growth as "abhorrent" and warned that these actions undermine the prospects for a two-state solution, which the EU views as the only viable path to lasting peace. Von der Leyen stated bluntly that "the situation is clearly deteriorating."

In her remarks, von der Leyen reiterated the European Commission's proposal to suspend the trade provisions of the EU-Israel Association Agreement, a move that could have significant economic consequences. However, she noted that the decision requires a qualified majority vote among EU member states. She also referenced recent sanctions imposed on certain Israelis and mentioned ongoing discussions about extending these sanctions to include Israel's National Security Minister Itamar Ben-Gvir, a proposal supported by countries like France and Italy but currently blocked by the Czech Republic. The Czech Foreign Minister has pledged to Israeli Foreign Minister Gideon Sa'ar that Prague will prevent such sanctions, though the EU is reportedly pressuring the Czech Republic to reconsider.

Von der Leyen's strong stance comes amid intense internal tensions within the EU leadership, particularly between her and EU Foreign Minister Kaja Kallas. Kallas has taken a more hostile approach toward Israel, even privately comparing it to an apartheid regime, which led to a breakdown in relations with Sa'ar. An EU official described their relationship as "very bad," attributing Kallas's push for tougher measures against Israel to a broader power struggle with von der Leyen. EU spokespeople have denied these reports, calling the accusations against Kallas unfounded.

Despite internal disagreements, von der Leyen's public statements mark a significant escalation in the EU's rhetoric toward Israel. The debate over economic sanctions and further punitive measures remains active among member states, signaling potential future actions depending on political developments within the Union.