EU-Israel relations: Confrontation or co-operation?

For the last decade, relations between the EU and Israel have been strained by tension over the Middle East peace process, but strengthened by intensive scientific and economic co-operation. So far, confrontation has not crowded out collaboration, but with the EU’s decision to get tougher on Israel’s settlements policy, this may change. Both Israel and the EU will need to find a balance between their disagreements over the settlements and the beneficial economic and scientific co-operation. They can take a number of steps in order to achieve this. 



The positive aspect of the relationship is not often recognised. Economic and research links between the EU and Israel are strong. In 2013, the value of EU-Israel trade was €29.5 billion (equal to 13.7 per cent of Israel’s GDP), with €12.5 billion imports to the EU and €17 billion exports to Israel. The EU is Israel’s main trading partner, accounting for one-third of its total trade. Large Israeli corporations have sizeable investments in Europe and employ many Europeans, while Israel, despite its small size, is one of Europe’s most important trading partners in the Middle East. It supplies Europe with high-tech products, including software and apps used in most PCs and smartphones, medical devices, chemicals and pharmaceuticals (Israel’s TEVA is one of the most important sources of generic medicines for Europe).

EU envoy: Yes to R&D deal, no to canceling settlement ban

The EU’s top official in Tel Aviv said that since Jerusalem recognizes the European Union’s position not to fund Israeli institutions located beyond the pre-1967 lines, the two sides can still reach an agreement over Israel’s involvement in a multimillion-euro scientific cooperation agreement. According to Israeli officials, negotiations over Israel’s participation reached an impasse this week due to continued obstinacy on part of the Europeans.

EU Ambassador to Israel Lars Faaborg-Andersen (photo credit: Yossi Zwecker)

“Our understanding is that the Israeli government has accepted the fundamental principle that the EU has a policy that says that we don’t want to use money in the settlements,” the EU’s ambassador-designate Lars Faaborg-Andersen told The Times of Israel. “And the Israeli government has formulated [its proposal] in a way that they don’t agree with that policy but accept that this is our policy. Given that, my assertion would be that once we agree on the principle, it should be possible to agree on how to implement this principle in practice. So I remain hopeful that a solution to this issue can be found.”