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In a significant and long-overdue shift, the European Commission has finally moved to recalibrate its relationship with Israel. Its proposed package of measures — sanctioning extremist Israeli ministers and violent settlers and suspending valuable trade concessions — marks the most substantive attempt by the EU to impose consequences for the Netanyahu government’s conduct in Gaza and the West Bank.

Commission President Ursula von der Leyen, who once stood accused of a pronounced pro-Israeli bias, now states unequivocally that “the horrific events taking place in Gaza on a daily basis must stop.” Her declaration that the EU remains an “unwavering champion of the two-state solution” being “undermined by the Israeli government’s recent settlement actions” is a stark admission that Brussels can no longer ignore the chasm between its stated principles and its enabling actions.

These steps are important. They signal a breaking point with an Israeli government that has dismissed, with increasing contempt, the concerns of its European partners. The proposed tariffs, reinstating Most Favored Nation rates on €5.8 billion of Israeli exports, are not merely symbolic; they are a tangible economic pressure designed to get Jerusalem’s attention. The targeted sanctions against ministers responsible for inflammatory rhetoric and policies add a necessary layer of personal accountability.

Yet, for all its heft, this package suffers from critical flaws: it is horribly late, it remains dangerously incomplete, and it is a crisis, to a large degree, of Europe’s own making.

First, the delay. For almost two years since Hamas’ attack on Israel and Israel’s military campaign in Gaza leading to the killing of more than 60,000 people the world has watched the devastating conflict unfold. The EU, “the biggest donor of humanitarian aid,” has been forced to react to a catastrophe its own trade and political support helped underwrite. This response, only now materializing after immense public and diplomatic pressure, feels less like proactive statecraft and more like a belated attempt to catch up to reality — and to the moral courage already shown by several of its own member states.

Second, and most glaringly, the package omits the most logical and legally sound measure: a full ban on trade with Israel’s illegal settlements in the occupied West Bank. This is a profound failure of principle and policy. The settlements are universally recognized under international law as illegal. They are the very engine of the occupation that von der Leyen now claims is undermining the two-state solution.

While the Commission hesitates, what the Brussels-based head of the European Middle East Project Martin Konecny calls “a domino effect” is taking hold at the national level. The Dutch government has just announced it will ban imports from Israeli settlements, becoming the fifth EU member state to do so, following recent and decisive moves by Ireland, Slovenia, Belgium, and Spain. This growing coalition underscores both the moral imperative and the political feasibility of such a measure that the Commission continues to avoid.

Furthermore, this is not merely a political choice; it is a legal obligation. The International Court of Justice (ICJ), in its landmark opinion last year, made clear that all states are required to cease trade and support that facilitates Israel’s illegal settlement regime. As a matter of EU law, a union-wide ban could — and should — be implemented by a qualified majority vote as a necessary trade measure to uphold fundamental legal principles. The continued failure to do so renders the EU complicit in perpetuating the very system it now claims to oppose.

Third, the Commission’s entire approach suffers from a crippling legal and moral loophole: its proposed measures are framed purely through a humanitarian lens, deliberately sidestepping the EU’s explicit legal obligations to prevent genocide. By focusing solely on suspending parts of the Association Agreement, the proposal ignores the most direct form of complicity — the continued flow of arms from member states to Israel.

These lethal transfers, which fall outside the Agreement’s scope, are the subject of Nicaragua’s landmark case against Germany at the ICJ, which argues that providing weapons to a state plausibly committing genocide is a violation of the Genocide Convention. According to the Stockholm International Peace Research Institute, Germany alone accounted for 30% of Israel’s major arms imports in 2019-2023. Berlin continued licensing the arms exports after the outbreak of war in 2023. The Commission’s failure to even address, let alone propose to halt, this pipeline of weapons from the member states while invoking “horrific events” reveals a strategic timidity that undermines the very rule of law it claims to defend.