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Sweden And Netherlands Urge EU To Suspend Israel Trade

European governments and cultural figures intensify pressure on Israel as Gaza faces famine and international courts weigh genocide charges.

6 min read

Calls for a dramatic shift in Europe’s stance toward Israel intensified this week as Sweden and the Netherlands jointly urged the European Union to suspend trade with Israel, citing what they described as an “extremely disturbing and intolerable” humanitarian crisis in Gaza and new Israeli settlement plans in the occupied West Bank. Their move, delivered in a formal letter to EU foreign policy chief Kaja Kallas on August 28, 2025, comes amid mounting international outrage over the devastation in Gaza and deepening divisions within the EU over how to respond.

The joint letter, reported by RTE News and Anadolu Agency, is a striking escalation. The Dutch and Swedish foreign ministers accused Israel of failing to honor a July 2025 agreement with the EU that was meant to boost humanitarian aid to Gaza. That agreement, brokered between Kallas and Israeli Foreign Minister Gideon Saar, had previously headed off tougher EU measures, including the suspension of the trade chapter of the EU-Israel Association Agreement. Now, with conditions in Gaza worsening, the ministers said they “support the suspension of the trade chapter of the EU-Israel Association agreement and call upon the (European) Commission to put forward a proposal to this end.”

The ministers’ letter goes further, calling for targeted sanctions against “extremist Israeli ministers who promote illegal settlement activities, and actively work against a negotiated two-state solution.” They also pressed Kallas to provide a written analysis of the EU’s compliance with the 2024 advisory opinion of the International Court of Justice (ICJ) on Israel’s occupation of Palestinian territories. The letter describes the Israeli Higher Planning Council’s recent approval of the E1 Construction Plan—which would extend a Jewish settlement in the West Bank and, in their words, “severely disrupt the contiguity of any future Palestinian state”—as “unacceptable and a clear violation of international law.” According to Anadolu, the ministers also acknowledged the role of Hamas, stating the group “bears a heavy responsibility for the catastrophic situation” and calling on it to relinquish power, disarm, and release remaining Israeli hostages.

The humanitarian situation in Gaza is dire. Since October 2023, Israeli military operations have killed nearly 63,000 Palestinians, according to multiple reports. The scale of destruction has left the enclave facing famine conditions. On August 22, 2025, the Integrated Food Security Phase Classification (IPC), a leading food crisis authority, officially declared that Gaza City is in the grip of famine—a crisis likely to spread without a ceasefire and an end to restrictions on humanitarian aid. The devastation has prompted increasing international scrutiny, with many voices now characterizing Israel’s actions as amounting to genocide.

Legal and political pressure on Israel has mounted in parallel. In November 2024, the International Criminal Court (ICC) issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defence Minister Yoav Gallant, charging them with war crimes and crimes against humanity in Gaza. Separately, Israel faces a genocide case at the International Court of Justice, with the ICJ finding claims of genocide plausible. Multiple United Nations human rights experts have echoed this assessment, stating that Israel’s military actions in Gaza could constitute genocide. Israel, for its part, has categorically rejected these accusations, insisting its operations are lawful acts of self-defense following Hamas’s attack on Israeli citizens on October 7, 2023.

These developments have not gone unnoticed in Europe’s cultural and political spheres. On August 28, 2025, Oscar-winning Spanish filmmaker Pedro Almodóvar publicly called on Spanish Prime Minister Pedro Sánchez to “sever diplomatic, commercial and all types of relations with the State of Israel as a sign of repulsion against the genocide it is committing against the people of Gaza before the eyes of the entire world.” The director, known for films like All About My Mother and The Skin I Live In, urged Sánchez to persuade other European leaders to follow suit, making his appeal in a video posted by his production company El Deseo.

Almodóvar’s activism is not new. In May 2025, he joined more than 350 international actors, directors, and producers in condemning the killing of Palestinian photojournalist Fatma Hassona and denouncing the “genocide” in Gaza. Their letter, published on the first day of the Cannes Film Festival, declared, “We cannot remain silent while genocide is taking place in Gaza,” and expressed shame at the world’s passivity. Last year, Almodóvar and 250 Spanish cultural figures also urged the Spanish government to impose a “comprehensive arms embargo” on Israel, warning, “History will judge us by our actions at critical moments like this. Let us put an end to this horror.”

Spain’s government has taken some steps in response to domestic and international pressure. In May 2024, Spain officially recognized the State of Palestine—a move described by Foreign Minister José Manuel Albares as a “historic milestone.” Albares emphasized that Spain’s decision signaled the country’s refusal to remain indifferent to suffering and its commitment to peace and solidarity. Despite this, and despite Sánchez himself describing Gaza’s situation as a “catastrophic situation of genocide” in June 2025, Spain has yet to cut all diplomatic and commercial ties with Israel as of late August 2025.

The debate over Europe’s response to the crisis is deeply polarized. Some governments, like those of Sweden and the Netherlands, now argue that the EU’s credibility and moral standing are at stake, especially given the ICJ’s advisory opinion and the visible humanitarian catastrophe. Their letter to Kallas is notable for its directness and its demand for concrete action, including EU-wide trade suspension and targeted sanctions. Supporters argue such measures are necessary to pressure Israel to change course and to uphold international law.

Others, however, caution against steps that could undermine the EU’s influence or destabilize the region further. There are fears that suspending trade or diplomatic relations might close off channels for negotiation or humanitarian access, or push Israel to further entrench its positions. Some EU member states remain wary of punitive measures, citing the need for balance, security concerns, and the complex realities on the ground.

Meanwhile, the suffering in Gaza continues, with the IPC warning that famine will likely spread across the territory unless there is an immediate ceasefire and a lifting of aid restrictions. As the humanitarian crisis deepens and calls for accountability grow louder, the EU faces a critical decision: whether to match its rhetoric with action, or risk accusations of complicity through inaction.

The coming weeks will reveal whether Europe’s leaders are prepared to heed the calls from both within and outside their borders—or whether the continent will remain divided as the crisis in Gaza grinds on.

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