It was a difficult week for Israel in Europe. The country lost its strongest regional ally when Viktor Orbán was removed from power in Hungary, and Italy suspended a key defense agreement.
These changes are expected to open the door for long-delayed sanctions against violent settlers in the occupied West Bank and increase broader pressure on the EU to reassess its relationship with Israel over its wars in Gaza and the wider region.
“Hungary’s veto was the only thing blocking the sanctions package against violent settlers,” said Maya Sion-Tzidkiyahu, director of the Israel-Europe relations program at the Mitvim think tank. “I expect that once the new Tisza government is in place, that will be one of the first things the EU pushes for, and it should be easy for Péter Magyar to agree. From the perspective of many Europeans, Netanyahu is on the wrong side of history and is a symbol for Orbán.”
EU officials anticipate reviving sanctions targeting a small number of extremist settlers once a new Hungarian government takes office next month. Meanwhile, Ireland, Spain, and Slovenia—among Europe’s strongest supporters of the Palestinian cause—have called for a discussion on Israel’s human rights obligations under its EU association agreement when foreign ministers meet on Tuesday.
“The European Union can no longer remain on the sidelines,” wrote the foreign ministers of the three countries in a letter to EU foreign policy chief Kaja Kallas, citing “unbearable” conditions in Gaza and “escalating violence against Palestinians” in the West Bank.
While sanctions on settlers are seen as largely symbolic, targeting a small group with few ties to Europe, passing them could build momentum for broader actions, including suspending parts of the EU-Israel association agreement.
The EU is Israel’s largest trading partner, most popular travel destination, and a vital source of research funding through the multi-billion dollar Horizon program. However, it has never successfully leveraged that economic power into significant political influence within Israel.
“Now the discussion about leverage and pressure is back on the table,” said Martin Konečný, director of the European Middle East Project in Brussels. “If you take one step and the situation doesn’t improve, the pressure to take the next step rises very quickly again.”
Last week, more than 390 former EU ministers, ambassadors, and top officials urged the EU to suspend the EU-Israel association agreement in whole or in part. Signatories included former EU foreign affairs chief Josep Borrell, former Swedish foreign minister and UN weapons inspector Hans Blix, and former European Commission vice-president Margot Wallström.
A public petition demanding the same has surpassed one million signatures from all 27 member states, making it the fastest-growing petition of its kind, according to supporters.
Freezing all or part of the EU-Israel association agreement would require support from either Germany or Italy, as it needs a “qualified majority” of at least 15 member states representing 65% of the EU’s population. An attempt to halt trade provisions last September, in response to the humanitarian crisis in Gaza, failed to meet that threshold and stalled after a ceasefire deal brokered by Trump in October.
EU sources suggest that upcoming talks between Israel and Lebanon are likely to restrain any immediate EU action, as many European countries are cautious about disrupting delicate negotiations.
Italy’s abrupt political shift, signaled by its decision to suspend the defense pact, adds another layer of uncertainty for Israel’s standing in Europe.Suspending the defense cooperation deal means a renewed proposal may have a better chance of passing.
Italy’s Prime Minister, Giorgia Meloni, had been one of Israel’s closest allies in Europe, among several far-right leaders who built a strong personal rapport with Israeli Prime Minister Benjamin Netanyahu. She consistently went against public opinion in a country that has seen some of Europe’s largest protests against Israel’s wars, and where pro-Palestinian sentiment spans the political spectrum, from the left to the center-right.
According to Lorenzo Castellani, a political historian at Rome’s Luiss University, this was possible due to a separation between foreign and domestic policy that can no longer be maintained. “For the first time since World War II, foreign policy has become a central concern for Italian public opinion,” he said. “The reason is simple: this is a conflict with direct geopolitical and economic consequences for Italy and for Europe as a whole.”
The suspension of the defense memorandum appears more symbolic than substantive, as it only provided a framework for defense deals that will remain in place—but it served as a “clear warning” to Israel, one European diplomat noted.
Israel has effectively used its closest bilateral relationships to block or soften hostile EU policies, an approach described by Sion-Tzidkiyahu as “divide and thwart.” It can still rely on support from longstanding allies like the Czech Republic’s Andrej Babiš, and if Netanyahu loses power in elections expected this year, Magyar may forge closer ties with his successor.
However, political alliances with Israel are becoming increasingly costly for European leaders. The impact of regional conflicts has been amplified by Netanyahu’s close alliance with U.S. President Donald Trump, who frequently attacks Europe, mocks its culture and values, undermines its economy, and has even threatened invasion.
Many Europeans calling for stronger action against Israel argue that core European values are at stake, and that failure to act will weaken international rule of law. “The absence of meaningful measures against Israel, contrasted with extensive sanctions imposed on Russia, has raised concerns about double standards and risks undermining the EU’s international credibility,” said Pasquale Ferrara, a former senior Italian diplomat and scholar.
Concerns over maintaining Israel’s European alliances may have contributed to an unusual public dispute last week, when Israel’s ambassador to Germany, Ron Prosor, denounced Israel’s Finance Minister Bezalel Smotrich for attacking German Chancellor Friedrich Merz. After Smotrich posted a rant referencing the Nazi regime, Prosor “unequivocally condemned” the remarks, accusing the minister of eroding the memory of the Holocaust.
Sion-Tzidkiyahu observed: “When Israel is dependent on so few countries, and Germany is the main one because Meloni has turned her back, you have to protect that relationship.”
Since the war in Gaza, German public opinion, much like in Italy, has moved away from the government’s steadfast support of the Israeli government. Most voters are now critical of the Netanyahu administration, but Germany’s responsibility for the Holocaust means it would never lead criticism of Israel.
Merz has criticized violence and settlement expansion in the occupied West Bank and has largely avoided his predecessor Angela Merkel’s phrasing that Israel’s security is a “Staatsräson” or “reason of state” for Germany. Still, he said in an interview last year that Israel’s security remains at the core of German foreign policy.
The loss of Orbán and Meloni’s distancing has received limited attention.In Israel, foreign policy debates are dominated by conflicts with Iran and Lebanon, as well as relations with the United States. Yet few Israelis realize just how much their standard of living relies on ties with Europe. According to an August 2025 survey by the Mitvim think tank, two-thirds of Israelis view the European Union as an adversary, while only 14% see it as a friend.
“All Israelis know we depend on the U.S. for security, but they don’t understand that we depend on the European Union economically,” said Sion-Tzidkiyahu. “We’ve diversified our trade, but the EU remains our largest trading partner for both exports and imports.”
Frequently Asked Questions
Of course Here is a list of FAQs about Israels recent challenges in Europe and the potential implications for its relationship with the EU
BeginnerLevel Questions
1 What happened I heard Israel had a difficult week in Europe
Several European countries including Ireland Spain and Norway formally recognized the State of Palestine Simultaneously the International Criminal Courts prosecutor requested arrest warrants for top Israeli and Hamas leaders and the International Court of Justice ordered Israel to halt its military offensive in Rafah These coordinated actions created significant diplomatic pressure
2 Why are these European countries recognizing Palestine now
These governments cite frustration with the ongoing war in Gaza a growing humanitarian crisis and the belief that a twostate solution is the only path to lasting peace They see recognition as a way to strengthen moderate Palestinian leadership and apply diplomatic pressure on Israel
3 Does this mean the entire EU is against Israel
No not at all The EU is not a monolith While there is growing criticism key member states like Germany France and Italy have not recognized Palestine and maintain strong economic and security ties with Israel The EUs official position still supports a negotiated twostate solution
4 What is the ICC and ICJ and why do their actions matter
ICC A court that prosecutes individuals for war crimes and crimes against humanity Its prosecutors request for warrants is a major symbolic step implying alleged serious crimes have occurred
ICJ The UNs top court that settles disputes between states Its orders are legally binding but the court has no direct enforcement power Its rulings carry heavy political and moral weight
Advanced Strategic Questions
5 Could this signal a broader permanent change in IsraelEU relations
It signals a significant erosion of diplomatic support within important segments of Europe which could become more entrenched if the war continues However a complete rupture is unlikely due to deeprooted trade technology and security cooperation The relationship is becoming more transactional and less based on shared values
6 What are the practical consequences for Israel from these moves
In the short term increased diplomatic isolation and reputational damage In the longer term it could lead to
Increased support for sanctions or trade measures from certain EU members
