This is how the EU-Israel Association Agreement works, whose suspension is blocked by a lack of unanimity among the Twenty-Seven

The division among the Twenty-Seven prevents progress on the proposal to suspend the agreement with Israel, while the EU explores partial measures that do not require unanimity

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The Prime Minister of Israel, Benjamin Netanyahu, attends a session of his corruption trial in Tel Aviv in 2024 Europa Press/Contacto/Reuven Kastro

The Prime Minister of Israel, Benjamin Netanyahu, attends a session of his corruption trial in Tel Aviv in 2024 Europa Press/Contacto/Reuven Kastro

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The refusal of countries like Germany and Italy to the proposal driven by Spain, Ireland, and Slovenia to suspend the Association Agreement between the European Union and Israel has evidenced this week the lack of consensus within the community bloc on how to respond to the situation in Gaza, the West Bank, and Lebanon.

The position of both countries, added to the confirmation by the head of European diplomacy, Kaja Kallas, that there is no sufficient majority to push this initiative, de facto blocks the proposal and reopens the debate on the real limits of the human rights clause of the agreement.

Said agreement between the EU and Israel in force in the year 2000 and constitutes one of the broadest and most complex frameworks for cooperation that the EU maintains with an Eastern Mediterranean country. Born in the Barcelona Process of the nineties, the treaty combines trade liberalization, scientific integration, and political dialogue.

However, its application has been progressively crossed by tensions in the Middle East involving Israel. Specifically, the three applicant countries mention among the reasons for presenting the proposal for its suspension what they consider a "grave situation" in West Bank and Gaza, and also the death penalty for Palestinians approved by Israel following the attack on Lebanon.

However, it is worth recalling what an agreement consists of that has once again opened a rift between the Twenty-Seven.

A strategic agreement with roots in the nineties

The agreement is signed in 1995, in a context in which the European Union promotes a strategy of regional stability in the Mediterranean after the end of the Cold War. The objective was to establish a framework for structured cooperation that fostered economic interdependence and political rapprochement with the countries of the southern shore.

Israel joins from the outset as one of the most advanced partners in the process, due to its highly developed economy and strong technological sector.

When the agreement enters into force in the year 2000, it consolidates an institutionalized relationship that goes beyond trade and is projected onto multiple areas of cooperation.

The economic pillar of the agreement and trade liberalization

The core of the treaty is economic and is articulated around the creation of an industrial free trade area between both parties. Over the years, the agreement has allowed the progressive elimination of tariffs on most industrial products, facilitating a stable and high value-added trade flow.

Bilateral trade reflects a complementary structure. Israel mainly exports technological products, pharmaceuticals, medical equipment, and goods with high innovative content. The European Union exports machinery, vehicles, industrial products, and intermediate goods.

In the agricultural sector, liberalization is more limited and is regulated through quotas and specific sectoral agreements. This chapter has historically been more sensitive due to its direct connection with political and territorial issues.

The question of the origin of products and its political dimension

One of the most controversial aspects of the agreement is the application of the rules of origin. The European Union establishes that only products originating from the territory internationally recognized as Israel can benefit from the preferential regime.

This excludes products originating from Israeli settlements in occupied territories, such as the West Bank, East Jerusalem, or the Golan Heights. These goods cannot be labeled as originating from Israel and must be identified with their specific origin.

This demand has generated recurrent diplomatic tensions due to the actions of Israeli settlers in the area and has forced the EU to develop more precise customs control mechanisms.

It has also been the subject of interpretation by the Court of Justice of the European Union, which has reinforced the obligation of territorial differentiation in labeling.

Scientific and technological cooperation as a structural axis

Beyond trade, the agreement has consolidated one of the European Union's most intense relationships with a third country in science and technology.

Israel actively participates in European research and innovation programs, such as Horizon Europe and Erasmus Plus. This participation places it among the most integrated non-EU partners in the European scientific ecosystem.

The cooperation covers strategic areas such as artificial intelligence, cybersecurity, biotechnology, energy, and medical technologies. For the European Union, this relationship has significant added value in terms of innovation and global competitiveness.

The human rights clause and its limited political application

The second article of the agreement establishes that respect for human rights and democratic principles constitutes an essential element of the treaty. This provision allows, in theory, the adoption of corrective measures in case of serious violations, including the partial or total suspension of the agreement, as considered by Spain, Ireland, and Slovenia.

However, in practice, this clause has not been activated in terms of suspension. Its application depends on the consensus among member states, which has limited its effectiveness as a coercive instrument.

In practice, it has functioned more as a political framework than as an operational sanctioning mechanism.

A framework increasingly conditioned by international politics

In recent years, the agreement has acquired an increasingly political dimension, especially in the context of the conflict in Gaza and the situation in the occupied territories of the West Bank.

Within the European Union, positions are divided. Some Member States defend the maintenance of the agreement without modifications, underlining its strategic importance in commercial and scientific matters. Others have raised the need to review its scope or condition certain benefits on stricter compliance with human rights.

The European Commission has maintained an intermediate position, avoiding the suspension of the agreement, but strengthening the control mechanisms, especially regarding the origin of the products and the evaluation of compliance with international obligations.

Background

In June 2025, Spain had already requested the immediate suspension of the Association Agreement with Israel in response to the situation in Gaza, an initiative that at the time also met with the opposition of Germany and Italy.

Given the lack of sufficient support, the European Commission opted for a more limited alternative, proposing to restrict Israeli participation in the Horizon community scientific program, although the measure did not manage to gather the necessary majority of 15 member states to move forward.

The Minister of Foreign Affairs, José Manuel Albares, has called on his European counterparts for a "strong signal" towards Israel within the framework of the debate on the Association Agreement.

Upon his arrival at the Foreign Affairs Council meeting in Luxembourg this week, the Minister of Foreign Affairs, José Manuel Albares, stressed that the European Union must send a clear message to Israel about the need to modify its approach. "We have to tell Israel clearly that it has to change course, that war cannot be the only way to relate to its neighbors," he stated.

But the High Representative of the European Union for Foreign Affairs, Kaja Kallas, pointed out for her part that, given the lack of consensus to suspend the Association Agreement with Israel, the debate within the Union will continue to focus on those measures that do not require unanimity among the Member States.

The Commission already raised in September the possibility of suspending certain trade preferences included in the agreement, an option that does not imply its total rupture and that can be adopted by a qualified majority. In parallel, possible sanctions against Israeli settlers accused of violence are also under discussion, as well as against two members of Benjamin Netanyahu's government, Bezalel Smotrich and Itamar Ben-Gvir, although these latter measures would require unanimity, which also complicates their approval in the current European political scenario.