EU Trade Tensions: Ursula von der Leyen Pushes Suspension with Israel

Commission president cites illegal West Bank settlement plans, Gaza and attempts to ‘undermine two-state solution’

A Bold Call for Suspension

In a dramatic appeal during her “state of the union” address to the European Parliament in Strasbourg, European Commission President Ursula von der Leyen called for a suspension of free trade with Israel. Her argument stemmed from the controversial plans to expand illegal settlements across the occupied West Bank, potentially splitting the territory in half and dangerously undermining the possibility of a two-state solution.

A Tale of Two Regions

Highlighting Europe’s discomfort with the ongoing conflict in Gaza, von der Leyen discussed the unexpected strains faced by EU after stepping into a turbulent world. She emphasized the necessity for Europe to reassess its response to Israel, amidst a geopolitical landscape where dependencies become “ruthlessly weaponized.”

Turning the EU’s Economic Leverage

Von der Leyen’s speech echoed a long-standing call by critics who urge Europe to exert its influence as Israel’s largest trading partner. The EU accounts for 32% of Israel’s global goods trade, contrasting sharply with Israel’s mere 0.8% contribution to EU trade. According to The Guardian, von der Leyen now champions suspending the trade aspects of the EU-Israel association agreement. However, the European bloc remains deeply divided on this complex issue.

The Speech After Shock

The weight of von der Leyen’s address resonated far beyond the issue of free trade with Israel. With her sights on broader strategic changes, she pushed for the EU to forsake its reliance on consensus-based policy decisions—a move she believes could enhance efficacy across European foreign policy. Additionally, she re-affirmed commitment to the bloc’s climate agenda and emphasized prioritizing children’s safety on social media.

A Divided Reception

While the speech garnered applause and nods from various quarters, it also sparked criticism, particularly from the European Parliament’s left and far-right Members of the European Parliament (MEPs). The Socialists, led by Iratxe García Pérez, criticized the measures as insufficient, while Terry Reintke of the Greens expressed expectations for more substantial actions. In contrast, far-right MEPs rose to challenge von der Leyen’s climate stance and counter-disinformation initiatives.

Facing a world where cleavages within and outside Europe threaten stability, von der Leyen concluded with somber reflections on global dynamics. She stressed the EU’s intent to counteract Russia’s war efforts in Ukraine and confirmed her support for additional sanctions on Russian oil and fossil fuel imports. The suggestion to finance Ukraine’s war effort using €300bn in frozen Russian assets illustrates a nuanced grasp of geopolitical intricacies that will define Europe’s future role on the world stage.

This decisive call by Ursula von der Leyen signals a pivotal movement in EU’s political and economic landscape, where decisions could redefine partnerships and realign global relationships.