EU remains deeply divided on sanctioning illegal Israeli settlements

A European Union foreign ministers’ summit has failed to approve a motion seeking to impose trade sanctions on illegal settlements in the occupied West Bank.

The summit on Monday debated three options set out in a confidential paper by the European Commission, but failed to back any of them decisively. The result illustrates that the bloc remains deeply divided over efforts by some member states to act on the issue.

The foreign ministers discussed the trio of options put forward: an import licensing system, prohibitive tariffs, or a ban on trade.

EU foreign policy ⁠chief Kaja Kallas said that the ban received the most support, but that there was no clear majority for a single option. She added that ambassadors from member states were tasked with further work on the issue.

“In the coming weeks, there needs to be clarity about where that group in the middle stands,” said Dutch Foreign Minister Tom Berendsen about a collection of moderate countries that are still considering their position.

“Then we hope to be able to take another step at the end of the summer [in September],” he said.

Pressure from EU member states to impose sanctions has increased in recent months due to escalating violence by Israeli settlers against Palestinians and their property and the Israeli government’s continued expansion of settlements, which are illegal under international law.

“Everybody agrees that the situation in the West Bank is really intolerable,” Kallas said at the start of the meeting in Brussels, Belgium.

“What is happening in the West Bank is actually making it more and more impossible that the two-state solution ever can come into effect,” she added.

Diplomats said before the meeting that they did not expect a formal decision on a particular measure, but the talks would help sound out if there is enough support to move forward.

There is a lack of unity in Brussels as to whether any penalty would need backing from all 27 member states or just a weighted majority.

Some diplomats said banning trade with Israeli settlements would require a qualified majority of at least 15 EU states, representing 65 percent of the bloc’s population.

But the commission’s paper suggested it believes a ban could require unanimous support, a ‌bar ‌the bloc would be highly unlikely to clear.

Spain, Belgium, and the Republic of Ireland have called for severe sanctions to be imposed on Israel due to its settlement policy while others, including Germany and Italy, have opposed such a step.

“There have been a lot of asks and requests from the member states regarding the ban of the trade with illegal settlements,” Kallas said. “Let’s see if these options that have been provided now will have a stronger push from member states.”

Illegal settlements

Israel has occupied the West Bank since 1967. More than 500,000 Israeli settlers live in the territory, excluding occupied East Jerusalem, among about three million Palestinians.

In a July 2024 advisory opinion, the International Court of Justice said Israel’s occupation of Palestinian lands and its settlements in the West Bank are illegal and states should take steps to prevent trade or investment relations that help maintain the situation.

Ireland, the Netherlands and Spain have already imposed their own trade restrictions on Israeli settlements.

Israel rejects this, viewing the territory as disputed and saying a Jewish presence has existed there for thousands of years.