EU Fails to Approve Suspension of Israeli Startups from Horizon Europe Over Human Rights Concerns

The European Commission’s proposal to suspend funding for Israeli startups through the Horizon Europe program failed to receive the necessary majority in the EU Council on Tuesday. Despite mounting pressure over the humanitarian crisis in Gaza, key member states blocked the resolution or called for further assessment before taking action.

The resolution, which targeted startups potentially linked to military applications, required a qualified majority: support from at least 55% of EU countries representing 65% of the EU population. According to a diplomatic source familiar with the proceedings, that threshold was not met due to opposition or hesitation from several member states—most notably Germany and Italy.

These countries reportedly requested additional time to evaluate whether the humanitarian situation in Gaza has improved before deciding on whether to back a partial or full suspension of cooperation with Israeli startups.

Restrictions Target Breakthrough Technologies

The Commission’s proposal would suspend Israeli eligibility for new grants from the European Innovation Council (EIC) under the Horizon Europe program. Although initially aimed at dual-use technologies that could be employed for military purposes, the language of the resolution suggested a broader freeze on all startup funding.

Senior EU officials confirmed that, if approved, the decision would bar "legal entities established in Israel" from applying for future EIC grants. However, companies that have already received funding will not be affected.

€900 Million Allocated to Israel Since 2021

At a press briefing in Brussels, Marc Le Maire, Director-General for Innovation at the European Commission, noted that Israel has received over €900 million from Horizon Europe since its launch in 2021. Of this, roughly €200 million went to startups and private-sector initiatives, while the majority supported academic research.

“This proposal will in no way affect basic research, the Marie Curie postdoctoral program, or international research collaborations,” Le Maire clarified.
“We are specifically targeting entities involved in breakthrough technologies, whether in biotech, quantum, or any advanced field.”

Le Maire added that the measure is not directly tied to Israel’s actions in the Gaza conflict, although the humanitarian context played a significant role in shaping the proposal.

Humanitarian Concerns Remain Central to EU Debate

EU officials stressed that the push for the funding suspension was prompted by the worsening humanitarian situation in Gaza. Helene Le Gall, head of the Middle East department at the European External Action Service, said Israel had taken some steps in line with recent EU understandings—but the absence of a ceasefire continues to make the situation "extremely difficult."

Maciej Popowski, Director-General for Humanitarian Affairs at the European Commission, noted that while some technical issues had improved—including the restoration of water and electricity links to Gaza—humanitarian access remained severely restricted.

“Israel has implemented parts of the agreements made with us,” Popowski said. “But the situation remains dismal, largely due to access limitations.”

EU Officials Denied Entry to Gaza

Popowski revealed that his own planned entry into Gaza, alongside a senior UNICEF official, was denied by Israeli authorities.

“I was told it was too dangerous because it’s a war zone. Yet a senior UN official was allowed in. That’s not a reasonable explanation,” he said.

He also cited discrepancies in aid reporting. While Israel claims 200 trucks of aid entered Gaza yesterday, EU monitors recorded only 86, and Popowski said he lacked permission to verify the situation on the ground.

Next Steps Unclear as EU Debate Continues

The European Commission's move was seen by many as an attempt to increase pressure on Israel without fully disrupting long-standing research ties. However, the lack of consensus among member states underscores the complex political dynamics surrounding EU-Israel relations.

With Germany and Italy calling for further review, it remains uncertain whether the proposal will be revised, shelved, or reintroduced with a narrower scope in the coming weeks.