Germany Yet to Decide on EU Sanctions Against Israel

Germany has not yet reached a decision on whether to support proposed European Union sanctions against Israel, Chancellor Friedrich Merz said Thursday during a visit to Madrid. He confirmed that Berlin would clarify its stance before the EU meeting in Copenhagen this October.

Merz criticized Israel’s conduct in Gaza as “not proportional” to its stated goals, but pushed back against claims that it amounted to genocide. He further stated that Germany is not considering recognition of Palestinian statehood at this time, in contrast to other European powers.

France, Luxembourg, and several other EU members plan to recognize a Palestinian state at the United Nations General Assembly later this month. Reports also suggest that the United Kingdom may follow suit as soon as next week, after US President Donald Trump concludes his state visit there.

The backdrop is a broader EU push to reassess relations with Israel. The European Commission has proposed suspending parts of its free trade agreement with Israel a deal worth 5.8 billion euros in Israeli exports. Commission President Ursula von der Leyen also announced sanctions targeting extremist Israeli politicians, West Bank settlers, and Hamas operatives.

“The horrific events taking place in Gaza on a daily basis must stop,” von der Leyen said, calling for an immediate ceasefire, unrestricted humanitarian aid, and the release of all hostages held by Hamas. She clarified that while EU bilateral support for Israel would be frozen, assistance for Israeli civil society and institutions like Yad Vashem would continue.

The EU remains Israel’s largest trading partner, accounting for roughly 32% of Israel’s total international trade. Should the trade accord be suspended, Israeli exports to Europe would face the same tariffs as goods from non-preferential countries, a move that could significantly impact Israel’s economy.

Germany’s final position will carry weight in shaping the EU’s next steps. As Europe debates punitive measures, Israel continues to stress both its right to self-defense against Hamas and its vital partnership with democratic allies.

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