In her State of the Union address to the European Parliament in Strasbourg on 10 September 2025, Ursula von der Leyen announced that the EU would suspend financial support for Israel.
The reason for this is the current situation in Gaza. In this context, the Commission President said:
“It truly pains me to say these words.
And I know that for many citizens, Europe’s inability to agree on a common way forward is equally painful. They are asking how much worse things must get before there is unity of response. I understand.
Because what is happening in Gaza is unacceptable.
And because Europe must lead the way – just as it has done before. Our financial support and humanitarian aid far outweigh that of any other partner.
Our commitment to a viable Palestinian Authority is keeping a two-state solution alive. And we must urge others to urgently step up too – both in the region and beyond. But, of course, Europe needs to do more.
Many Member States have moved ahead on their own. On our side, we proposed to suspend parts of our Horizon funding. But this is stuck without a majority. We must overcome this. We cannot afford to be paralysed.
This is why I will propose a package of measures to carve out a way forward.
First, the Commission will do all that it can on its own. We will put our bilateral support to Israel on hold. We will stop all payments in these areas – without affecting our work with Israeli civil society or Yad Vashem.
Second, we will make two further proposals to the Council. We will propose sanctions on the extremist ministers and on violent settlers. And we will also propose a partial suspension of the Association Agreement on trade-related matters.
I am aware it will be difficult to find majorities. And I know that any action will be too much for some. Too little for others. But we must all take our own responsibilities – Parliament, Council and Commission.
Thirdly, we will set up a Palestine Donor Group next month – including a dedicated instrument for Gaza reconstruction. This will be an international effort with regional partners. And it will build on the momentum of the New York Conference organised by France and Saudi Arabia.”
Source: European Commission