European Commission seeks to limit Israel's participation in EU research and development program

The European Commission is attempting to suspend or limit Israel’s access to Horizon Europe, its research and development program, according to reports on Monday.

Several EU countries have indicated they believe Israel needs to increase aid and supplies into Gaza, and they seek to exert pressure on the Jewish state.

“While Israel has announced a daily humanitarian pause in Gaza fighting and has met some of its commitments under the common understanding on humanitarian aid and access, the situation remains severe,” according to the Commission statement. “The proposed suspension is a targeted and reversible action.”

The proposal will mean limited funding access for Israeli start-ups that are high tech, research intensive, and requiring significant capital. The reduction in funding would likely affect Israeli companies researching and developing AI, cybersecurity, and drone technology. In 2024, Israel was one of the top three countries competing for funding from these companies, alongside France and Germany.

The proposed suspension comes after the EU's review of its association agreement with Israel. In June, the review found Israel in breach of its human rights obligations under the agreement. EU foreign ministers are scheduled to discuss potential consequences during a meeting next month, according to two officials.

Israel’s Foreign Ministry called the suggestion to suspend funds “mistaken, regrettable, and unjustified.”

“At a time when Israel is fighting Hamas’s jihadist terrorism, any such decision only serves to strengthen Hamas and therefore undermines the chances of reaching a ceasefire and a framework for the release of hostages,” the Foreign Ministry stated.

“Israel will work to ensure that this recommendation is not adopted by the EU Foreign Affairs Council, and we hope that will indeed be the case. Either way, Israel will not yield to pressure when it comes to its national interests."