EU possesses significant influence over Israel compared to the U.S.
The European Union (EU) and the United States (US) each hold significant influence over Israel, though their approaches differ due to individual policies, historical contexts, and strategic interests.
In economic terms, the EU is Israel's largest trading partner, accounting for approximately 30-32% of Israel's total trade. This significant economic relationship grants the EU considerable influence over Israel's economy. The EU-Israel Association Agreement, signed in 1995, facilitates trade and economic cooperation, but it also includes provisions related to human rights and the Israeli-Palestinian conflict. In contrast, the US is also a major trading partner for Israel, but its economic influence is more balanced with geopolitical and strategic considerations.
Legally, the EU has mechanisms to enforce compliance with its trade agreements, including the potential to suspend the Association Agreement if Israel fails to meet its obligations. The EU has discussed taking legislative actions to discourage financial transactions supporting settlement activities. On the other hand, the US does not have a similar legal trade framework, but it uses diplomatic and economic leverage to influence Israeli policies.
Politically, the EU's influence over Israel is complex, with some member states fostering close bilateral relations while others are more critical of Israeli actions, particularly regarding settlements and human rights. The EU's criticisms and potential sanctions can impact Israel's international standing. The US, on the other hand, has traditionally provided strong diplomatic support to Israel, often shielding it from international criticism.
The EU's economic and legal leverage is more pronounced, while the US maintains significant geopolitical and strategic influence. Israel's privileged access to the European single market comes with conditions, and European criticism or conditional cooperation does not provoke defensive reactions from Israel, unlike American pressure. The European Union applies regulatory pressure on Israeli businesses, particularly those linked to settlement activities in the occupied territories.
The Netherlands, for instance, accounted for two-thirds of the EU's investment, making it Israel's top investor worldwide. Despite Israel's continued occupation of Palestinian territories and the ongoing military campaign in Gaza, EU exports to Israel increased by €1 billion in 2023. Israeli companies invested €65.9 billion in the EU in 2023, making the EU Israel's main destination for foreign investment.
The EU's multi-dimensional engagement spanning economic, legal, and political spheres places it at the heart of any serious effort to influence Israeli policy today. European public sentiment, critical of Israeli policies, particularly concerning Gaza and the West Bank, influences European policymakers. The European Union holds decisive leverage across trade, investment, legal frameworks, and public diplomacy.
In conclusion, the EU's influence over Israel is substantial due to its economic, legal, and political leverage. While the US maintains significant geopolitical and strategic influence, the EU's approach is more pronounced in economic and legal terms. The EU's ability to influence Israeli actions is further enhanced by public scrutiny, political will, and economic leverage.
- The European Union, being Israel's largest trading partner, exerts considerable economic influence over Israel, with approximately 30-32% of Israel's total trade accounted for by the EU.
- The EU's trade agreements, such as the EU-Israel Association Agreement, include provisions related to human rights and the Israeli-Palestinian conflict, and the EU has mechanisms to enforce compliance, including the potential suspension of the agreement.
- In response to Israeli actions, particularly concerning Gaza and the West Bank, European public sentiment influences European policymakers, positioning the EU at the heart of any serious effort to influence Israeli policy today.
