The European Commission said on Monday it has proposed suspending Israel's participation in parts of the Horizon Europe research funding program, citing the worsening conditions for Palestinians in the Gaza Strip.
"While Israel has announced a daily humanitarian pause in Gaza fighting and has met some of its commitments under the common understanding on humanitarian aid and access, the situation remains severe," the EU's executive arm said in a statement.
The decision, if implemented, would affect Israeli participation in the EIC Accelerator. The program falls under Horizon Europe and funds startups and small businesses developing dual-use technologies such as cybersecurity, drones and artificial intelligence.
Israeli universities and researchers involved in Horizon Europe cooperation projects would not be affected.
The commission cites recent findings by EU auditors who concluded that Israel's actions in Gaza violate the principle of respect for human rights, a condition embedded in the association agreement that went into force in 2000 and underpins political and economic cooperation between the EU and Israel.
The statement specifically accused Israel of severely restricting the delivery of humanitarian aid to the roughly 2 million Palestinians living in the Gaza Strip, which Israel has sealed off, in recent months.
The proposal does not require unanimous approval from all EU member states. A qualified majority – comprising 15 of the 27 member countries, representing at least 65% of the EU population – would be sufficient to adopt the measure.
EU ambassadors were expected to discuss the proposal in Brussels on Tuesday and decide how to proceed.
The Israeli Foreign Ministry quickly condemned the recommendation, claiming that it is "mistaken, regrettable and unjustified." Israel said it would work to block the measure from being adopted.
Several EU countries, including Germany, Austria, Hungary and Czechia, have previously voiced opposition to sanctioning Israel.