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EU capitals push von der Leyen on trade with Israeli settlements

Created at 13 Jul · 2:31 AM1 source↑ Market-relevant
IN SHORT

A bloc of EU countries, including Belgium, the Netherlands, and Spain, are pushing to compel the European Commission to propose measures limiting trade with illegal Israeli settlements in the West Bank. The effort is creating a standoff between EU institutions and member states.

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Key Numbers

0.5 percentof EU's overall trade with Israel comes from settlements

Who's Involved

Ursula von der Leyen
President of the European Commission, resisting new trade measures
Kaja Kallas
EU foreign policy chief, urging new trade measures
Nacho Sánchez Amor
Spanish lawmaker on the European Parliament’s foreign affairs committee, advocating for import prohibition
Gideon Sa’ar
Israeli Foreign Minister, in dispute with Kaja Kallas
Barry Andrews
Irish lawmaker, criticizing Commission's delay
Itamar Ben Gvir
Israeli National Security Minister, mentioned as potential beneficiary of delayed action
Belgium
EU country pushing for trade limits
Netherlands
EU country pushing for trade limits
Spain
EU country pushing for trade limits
Germany
EU country resisting new trade measures
Czech Republic
EU country resisting new trade measures
European Commission
EU executive body facing pressure on trade policy
European Council’s legal service
Provided opinion on voting majority for trade measures
EU capitals push von der Leyen on trade with Israeli settlements

↳ Why This Matters

The dispute highlights deep divisions within the EU regarding its Middle East policy and the enforcement of international law concerning Israeli settlements. It also underscores the tension between the European Commission's executive authority and the collective will of member states, with potential implications for future EU foreign policy decisions and its relationship with Israel.

Key facts

  • A group of EU countries, including Belgium, the Netherlands, and Spain, are seeking to force the European Commission to propose limits on trade with illegal Israeli settlements.
  • The push is creating a division between EU institutions and member states, with Kaja Kallas supporting tougher action and the Commission, Germany, and the Czech Republic resisting.
  • The European Commission has outlined potential measures like a licensing system and prohibitive tariffs but has not put forward a formal proposal for a vote.
  • The debate hinges on whether trade measures require a qualified majority or unanimous backing, with a legal opinion favoring the former.
  • Critics accuse the Commission of delaying action ahead of upcoming Israeli elections in October.

A coalition of European Union member states, including Belgium, the Netherlands, and Spain, is escalating pressure on the European Commission to implement stricter trade limitations with illegal Israeli settlements in the West Bank. This initiative is set to be a central point of discussion at a meeting of EU foreign ministers in Brussels.

The push is creating a significant rift, pitting certain national capitals against the Commission, led by Ursula von der Leyen, and allies like Germany and the Czech Republic, who are hesitant to impose new measures. EU foreign policy chief Kaja Kallas, however, is publicly advocating for the Commission to develop new trade policies targeting the settlements.

While the foreign ministers' meeting will not decide on specific tariffs or import restrictions, the immediate focus is on whether the proponents can secure a majority to formally request a proposal from the Commission. Such a proposal would then be subject to a later vote by member states.

Trade with the settlements constitutes a small fraction of the EU's overall trade with Israel, estimated at around 0.5 percent. Nevertheless, the issue has gained prominence following the October 7th attacks and the subsequent war in Gaza, overshadowing other foreign policy agenda items.

Nacho Sánchez Amor, a Spanish lawmaker, stated that settlements are illegal and advocated for a complete prohibition of goods produced within them. The German-led Commission has previously resisted similar proposals, citing past rejections. Germany, supported by Prague, is reportedly prepared to veto or abstain on any vote concerning tariffs on Israel.

Critics argue that the Commission is deliberately delaying action, potentially to avoid complicating matters ahead of Israeli elections scheduled for October. They point to the Commission's recent circulation of a discussion paper outlining options like a licensing system and prohibitive tariffs, which does not constitute a formal proposal requiring a vote.

A key point of contention is whether such measures fall under trade policy, requiring a qualified majority, or common foreign and security policy, demanding unanimity. The Commission and Germany maintain the latter, while the countries pushing for action cite a European Council legal service opinion suggesting trade policy rules apply, requiring only a qualified majority.

Barry Andrews, an Irish lawmaker, criticized the perceived "foot-dragging" by the Commission, emphasizing the ongoing humanitarian crisis and the urgency of the situation.

Frequently asked questions

A group of EU countries wants to force the European Commission to propose limiting trade with illegal Israeli settlements, but the Commission and some member states are resisting.

Belgium, the Netherlands, and Spain are among the countries advocating for stricter trade limits, with support from EU foreign policy chief Kaja Kallas.

The Commission, supported by Germany and the Czech Republic, has resisted proposing new trade measures, arguing that similar proposals have been rejected in the past. They have presented options but not a formal proposal for a vote.

There is a dispute over whether trade measures require a qualified majority vote or unanimous backing, with a legal opinion from the European Council suggesting a qualified majority is sufficient.

What Happens Next

01EU foreign ministers will meet to discuss trade measures against Israeli settlements.
02A majority of countries may demand a formal proposal from the European Commission.
03Member states could vote on potential trade restrictions at a later date.

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Cadence

How It Developed

Several EU countries are pushing for tougher limits on trade with West Bank settlements.
These countries aim to assemble a majority to force the European Commission to propose trade restrictions.
EU foreign policy chief Kaja Kallas supports tougher action, while the Commission and countries like Germany and the Czech Republic resist.
The European Commission has presented options for limiting trade but not a formal proposal for a vote.
A legal opinion suggests such measures would require a qualified majority, not unanimity, a point disputed by the Commission and Germany.
Critics suggest Ursula von der Leyen's Commission is delaying action ahead of Israeli elections in October.

Sources

T1
Israel-critical capitals force von der Leyen showdown over illegal settlementsPOLITICO Europe

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