Kaja Kallas, High Representative of the European Union for Foreign Affairs, speaking to journalists before the EU-Southern Neighbourhood ministerial meeting in Brussels, July 14, 2025. (Credit: Nicolas Tucat/AFP.)
The European Commission proposed on Monday to suspend funding for Israeli startups due to the dire humanitarian situation in Gaza.
"Even though Israel has announced a daily humanitarian pause in the fighting in Gaza and has met some of its commitments (...), the situation remains serious," the European executive said in a statement.
A report by the European Commission, presented to the 27 member states at the end of June, found that Israel was violating an article of the association agreement binding it to the EU, notably in terms of respecting human rights.
The European executive has since been working on its response, debating several possible options: banning certain exports, revising its visa policy, and so on.
The proposal presented Monday is among the more cautious options. It consists of partially suspending Israel’s participation in the major Horizon Europe research program. Startups specifically targeted include those specializing in cybersecurity, drones, or artificial intelligence.
The European executive describes this measure as "targeted" and "reversible." This proposal will be subject to approval by EU member states and will be discussed at a meeting on Tuesday.
The 27 member states have been particularly divided on what stance to take towards Israel since the start of its devastating war in Gaza in October 2023.
Several member states, including Germany, insist on Israel’s right to defend itself, in accordance with international law, while others, such as Spain, condemn what they describe as "genocide" against Gaza’s Palestinians.
On Sunday, the World Health Organization (WHO) warned that malnutrition rates in the Gaza Strip had reached "alarming levels," with "a peak in deaths in July." According to the Health Ministry of the enclave, at least 147 Palestinians have been recorded as having died from famine and malnutrition, including 14 new cases in the past 24 hours.
In total, at least 59,921 people have been killed by Israeli army attacks since the beginning of its offensive against the besieged Palestinian territory.
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