Germany opposes EU trade embargo on settlements

The German government made it clear today that any vote on a boycott or toughening of trade terms with Jewish settlements in Judea and Samaria by the EU requires unanimous agreement from all 27 member states, which significantly reduces the chances of the measure being adopted. EU foreign ministers are gathering today in Brussels for a meeting where, after months of pressure from countries that oppose Israel, such as Spain, Belgium and Ireland, the issue will be discussed.

The issue divides not only countries in the EU, but also within the EU hierarchy itself, and is leading to a conflict between the European Commission president Ursula von der Leyen and European Commission vice president and foreign affairs chief Kaja Kallas.

The pro-Palestinians in the EU have so far failed in their demand to suspend the EU’s association agreement with Israel, or to harm trade with it (the EU is Israel’s biggest trading partner), due to what is happening in Judea, Samaria and Gaza.

The EU has unanimously passed a series of resolutions against violent settlers, against the heads of organizations operating in the territories, and against some organizations (such as Emunah and Regavim). Now, the pro-Palestinians are trying to initiate a boycott at the EU level of settlement products. Such a move would be the first use of economic leverage as part of foreign policy regarding Israel.

To promote the boycott, the pro-Palestinian countries have demanded an opinion from the Commission on the matter. After many months in which the Commission has been reluctant to enter the fray, it was supposed to present a series of options today, from trade controls to trade bans, and which organizations would oversee the measures.

If any measures are solely in the field of trade, then a qualified majority is sufficient (at least 15 countries representing more than 65% of the population in the entire EU). If the measure is considered a measure in the field of foreign policy, then a unanimous majority is required.

German Foreign Minister Johann Wadephul has made it clear that for Germany, this is a foreign policy issue, which complicates the decision-making process.

Countries advance legislation against trade with settlements

In practice, this means that Germany has once again come out in support of Israel. Wadephul, a member of the ruling pro-Israel Christian Democratic Party, visited Israel last week, for the tenth time since he was appointed to the position last year. He made it clear that despite Berlin’s strong opposition to settlements and continued Israeli construction in the territories, “Dialogue must continue” with Israel and extreme measures must not be threatened.

Israel cuts ties with EUs top diplomat

Today’s discussion and the preliminary statements also illustrate the depth of the division that exists within the European Commission itself. On the one hand, the President of the Commission, Ursula von der Leyen, who is close to Germany and has positions that support Israel. On the other hand, the EU’s foreign relations chief, Kaja Kallas, who is considered more critical of Israel. Kallas said before the hearings this morning that in her opinion this was a decision that required only a privileged majority.

But even if at the EU level Germany repeatedly succeeds (together with a few other countries, such as Czechia) in preventing sanctions on Israel, at the level of nation states the situation is different. Ireland is moving forward with legislation that would ban trade with settlements, Spain and the Netherlands have already adopted similar measures, and even the UK, which is outside the EU, is considering imposing an embargo on trade with settlements.

Published by Globes, Israel business news – en.globes.co.il – on July 13, 2026.

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