Brussels, 17 September 2025 (dpa/MIA) -- The European Commission has proposed far-reaching sanctions on Israel, including the suspension of certain trade preferences that cover roughly a third of Israeli goods exported to the EU, in response to military operations in the Gaza Strip.

"We all agree that the situation in Gaza continues to head in the wrong direction. We must leverage the tools at our disposal to pressure the Israeli government into changing course," said European Union chief diplomat Kaja Kallas on Wednesday.

An internal EU review had concluded that Israel's actions in the embattled territory violate an EU-Israel agreement that obliges both sides to respect human rights.

"Suspending trade concessions and imposing sanctions on extremist ministers, violent settlers, and Hamas operatives would send a strong message from the European Union: this war must end, the suffering must stop, and the hostages must be released," she said.

It is however unclear if the proposal can find the required backing among the EU's 27 member states.

Suspending trade benefits for Israel would need the approval by 15 countries representing together at least 65% of the EU's total population.

A previous proposal to suspend research funding has so far failed to receive sufficient backing. Germany is opposed to the move.

Kallas had earlier called on Berlin and other EU countries to support sanctions plans.

The suspension of free trade benefits for Israel would affect 37% of Israeli goods exports to the EU, the commission said.

Without the concessions, "These goods will therefore be charged duties at the level applied to any other third country with whom the EU has no free trade agreement," a press release said.

The planned trade sanctions would be very costly for Israel, Kallas said previously.

Israel's trade with the EU accounts for around a third of Israel's total trade in goods, making the EU Israel's most important trading partner.

At the same time, however, Israel is not a major trading partner for the EU, according to commission figures: Israel represents less than 1% of its total trade in goods.

The commission also proposed to target Israeli Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir with travel bans and asset freezes in the EU. The commission also proposed new sanctions against the Palestinian terrorist organization Hamas.

These measures require unanimous backing by EU countries.

In addition, the commission will put on hold payments worth up to €20 million from an EU fund for international cooperation. A move that does not need the support of member states.