European Commission President Ursula von der Leyen has pledged to impose sanctions on Israel’s “extremist ministers” and violent settlers, while pausing bilateral EU payments to the country, in her most forceful intervention yet on the Gaza war.

Speaking in Strasbourg during her annual State of the Union address, von der Leyen declared: “What is happening in Gaza is unacceptable … For the sake of humanity, this must stop.” She said the Commission would freeze payments to the Israeli government — though funding for Holocaust memorial Yad Vashem and Israeli civil society would continue — and move to partially suspend trade aspects of the EU-Israel Association Agreement.

The announcement drew both applause and jeers from a deeply divided European Parliament. Many MEPs, some dressed in red to show solidarity with Gaza, cheered the move. But members of the far-right Alternative für Deutschland shouted protests, forcing colleagues and attendants to call for order.

Von der Leyen’s remarks mark a dramatic shift for Brussels, which has struggled for nearly two years to agree on a unified response to Israel’s military campaign in Gaza following Hamas’s 7 October 2023 attacks. National governments have repeatedly blocked tougher measures, including suspending Israel’s participation in EU research programmes, despite widespread anger among the European public over the humanitarian crisis.

The Commission president admitted that political gridlock had stymied action, fuelling frustration: “We will propose sanctions on the extremist ministers and on violent settlers … We will put our bilateral support to Israel on hold.”

The EU is Israel’s largest trading partner, accounting for nearly a third of its global trade. In 2024, EU exports to Israel totalled €26.7 billion, dominated by machinery, transport equipment, chemicals and other manufactured goods. Any move to suspend the trade pillar of the association agreement — which would reimpose tariffs rather than amounting to a full arms embargo — would still have a serious impact on Israel’s economy.

But passing such measures will be difficult. Large member states such as Italy and Germany have historically resisted efforts to suspend trade privileges, while close allies of Israel, including Hungary, Czechia, Austria and Poland, remain firmly opposed. Even within Parliament, efforts to reach a common resolution on Gaza collapsed ahead of von der Leyen’s speech, after her centre-right European People’s Party pulled out of negotiations.

Nevertheless, her tougher tone has buoyed centre-left lawmakers. Liberal MEP Hilde Vautmans said the speech had set “a new and important direction,” adding she hoped it would shift her rivals towards supporting the pending resolution.

Von der Leyen also referred to the “man-made famine” in Gaza, warning that Europe could no longer ignore a humanitarian disaster unfolding at its doorstep. Whether her words translate into action now depends on whether she can overcome the divisions that have long paralysed the EU’s policy on Israel.