European states, despite acknowledging a "man-made famine" in Gaza and widespread destruction, have consistently failed to leverage their significant economic power against Benjamin Netanyahu’s government. The European Union, Israel’s biggest trading partner, has allowed internal disunity and an "overoptimistic faith in the power of persuasion" to prevent meaningful action, even as the human cost of imperialist policies escalates. This inaction highlights the inherent limitations of liberal governance in challenging the mechanisms of capital accumulation and state violence.
Last September, the European Commission president, Ursula von der Leyen, expressed "horror and outrage" at aid restrictions that she stated created a “man-made famine” in Gaza. Brussels has also condemned settler violence and land grabs in the West Bank, recognizing these actions undermine the possibility of a viable Palestinian state. Following the bombing of Lebanon, the EU’s foreign policy chief, Kaja Kallas, stated that “Israel’s right to self-defence does not justify this destruction,” acknowledging the scale of the violence.
Capital's Leverage Unused
Despite these condemnations, the "angry words and exhortations have achieved nothing." Mr. Netanyahu and his ministers have treated European critics with "barely concealed contempt," reportedly reassured by the consistent support from their primary allies in the White House. The EU’s substantial economic ties, including its position as Israel’s biggest trading partner and the academic benefits conferred through Israeli participation in the Horizon research programme, represent significant leverage that has remained largely unused.
The geopolitical consequences of the "spectacularly reckless and illegal US-Israel war on Iran" are now destabilizing European economies. This material impact is forcing European governments to reconsider their passive stance. A third of Israel’s trade is conducted with the EU, providing the bloc with considerable economic cards to play. However, the bloc's "internal disunity" has historically prevented a unified response, demonstrating how the fragmented interests within the capitalist class can impede collective action even when their own economic stability is threatened.
The State's Inadequacy
Belatedly, there are indications of a potential shift in approach. The recent election outcome in Hungary, which saw the "election humiliation for Hungary’s outgoing prime minister, Viktor Orbán," is also seen as a setback for Mr. Netanyahu, who lost an "invaluable far-right ally." In February, Hungary was the sole EU country to vote against the adoption of sanctions targeting violent settlers in the West Bank, effectively blocking a measure that required unanimity. With Orbán’s successor expected to take office, the proposal is anticipated to return to the table.
More broadly, Spain is formally advocating for the EU to suspend its association agreement with Israel, an agreement that grants preferential status to economic and commercial relations, citing human rights violations. Such a measure would require unanimous support, which is unlikely to be secured from key countries like Germany. A partial suspension, specifically affecting the trade components of the agreement—a measure previously advocated by Ms. von der Leyen in September—would only require a weighted majority. However, this, too, proved unachievable last autumn, underscoring the limitations of reform efforts within the existing state structures. Last week, Italy’s prime minister, Giorgia Meloni, announced the suspension of a defense cooperation agreement with Israel "in view of the current situation," following "angry exchanges between Tel Aviv and Rome over civilian deaths in Lebanon." Meloni, like Orbán, was once considered a close political ally, indicating a growing strain within the imperialist alliance as the costs of conflict mount.