The European Union’s commissioners will meet on Wednesday to discuss suspending parts of trade agreements with Israel, a move that could significantly harm its economy, requiring approval from 15 member states representing 65% of the EU’s population.
Opposition from key nations like Germany and Italy, alongside Croatia, Romania, Greece, Hungary, the Czech Republic and Austria, has so far blocked the effort. Foreign Minister Gideon Sa’ar is conducting intensive talks to maintain their stance.
Czech Foreign Minister Jan Lipavsky told Sa’ar, “The Czech Republic opposes suspending the EU-Israel Association Agreement and will clearly resist it.” The EU may also consider personal sanctions on Israeli ministers, including Itamar Ben-Gvir and Bezalel Smotrich, though a previous attempt failed due to the need for full consensus, which Israel believes it can block.
The Netherlands has already imposed sanctions on them under the Schengen Agreement, affecting 29 countries. Israeli officials assess that trade sanctions would primarily affect minor foreign aid, with institutions like Yad Vashem explicitly exempted.
A senior Israeli official warned, “If these threats materialize and trade is hit, we’re truly heading toward Sparta,” referencing Prime Minister Benjamin Netanyahu's recent speech in which he explicitly told the Israeli public the country could require a shift toward an autarkic economy.
Netanyahu addressed the EU pressures in a press conference, saying, “I didn’t say the economy is in dire straits; I said they’ll try to stop us. The EU might try tomorrow or next week—it won’t affect us much. We can overcome this.” He criticized attempts to restrict imports of weapon components, attributing them to “extreme Islamic minorities” in Western Europe and “organized anti-Israel propaganda.”
At a Jerusalem economic conference, Netanyahu’s “super-Sparta” speech acknowledged Israel’s diplomatic isolation due to the Gaza war, warning of a shift toward an “autarkic economy,” which triggered sharp declines in the Tel Aviv Stock Exchange.
He added, “Muslims who migrated to Europe have become a vocal minority, bending governments. Our rivals exploit the digital revolution, with China and Qatar investing heavily in AI for immense power. We’ll need to develop more local weapons industries, becoming both Athens and super-Sparta—we have no choice."