The European Commission proposed on Tuesday, 29 July, a partial suspension of Israel’s participation in Horizon Europe, the EU’s €95 billion flagship research and innovation programme designed to drive economic growth, create jobs and improve citizens’ lives. The move follows a Commission review that raised concerns over Israel’s compliance with human rights obligations under the EU-Israel Association Agreement, particularly Article 2, which makes respect for human rights a core element of the partnership.
Under the proposal, Israeli start-ups and small businesses would no longer be eligible for grants or equity investments from the European Innovation Council’s (EIC) Accelerator, which supports disruptive and dual-use technologies such as artificial intelligence, drones, and cybersecurity. Since joining the programme as an associated country in 2021, Israeli technology companies have received roughly €200 million in EIC Accelerator funding. EU officials emphasise that the proposed suspension is “targeted and reversible”, leaving academic collaborations and research projects with Israeli universities unaffected.
EU officials describe the measure as a proportionate response that limits disruption to the wider trade and cooperation framework. However, several member states including, Spain and Ireland, argue that the EU should adopt tougher measures. An options paper presented to EU foreign ministers earlier this month laid out eight potential measures, ranging from suspending the association agreement to restricting visa-free travel for Israeli citizens. The paper also effectively signalled that Ireland could proceed with an import ban on goods from the occupied Palestinian territories, noting that member states are free to adopt their own measures.
International pressure is also mounting. This week, Canada, France and the UK stated they intend to recognise the State of Palestine, adding to calls within the EU for a tougher stance. Sweden has now also become the latest EU country to publicly support suspending the trade component of the EU-Israel Association Agreement.
Despite these developments, the support for suspending Horizon Europe remains uncertain. Early discussions among EU ambassadors on Tuesday failed to produce the qualified majority needed to approve the measure. Work on the proposal will continue in the coming days and weeks, as officials in Brussels seek to secure broader support among member states.
