EU Intensifies Pressure on Israel Over West Bank Settlements and Considers Trade Sanctions

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

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 now rests with EU member states, which must approve the measure by a qualified majority. She also referenced recent sanctions imposed on certain Israelis and mentioned ongoing discussions about extending these sanctions to 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.

This escalation in rhetoric from von der Leyen comes amid intense internal EU tensions, particularly between her and EU Foreign Affairs Chief Kaja Kallas, who has taken an even more confrontational stance toward Israel. Kallas has reportedly compared Israel to an apartheid regime in private discussions, a comparison that led to a diplomatic rift with Sa'ar. An EU official described their relationship as very poor, suggesting Kallas is pushing for tougher EU measures against Israel as part of a broader power struggle with von der Leyen. The EU spokesperson denied these reports, calling the accusations against Kallas unfounded.

Despite internal disagreements, von der Leyen's statements mark a significant hardening of the EU's public position on Israel. The prospect of economic sanctions and expanded punitive measures remains actively under consideration by EU member states, signaling a potential shift in EU-Israel relations amid ongoing settlement expansion and violence in the West Bank.