Europe awaits the next Israeli government: its composition may determine the path of sanctions

The European Union is closely watching the formation of the next Israeli government, amid disagreements over whether to proceed with trade and economic measures against Israel or to wait until the new coalition's makeup becomes clear. According to a report published by the Israeli newspaper Israel Hayom on Tuesday, the inconclusive election results regarding the identity of the next government have left European institutions facing divergent options, with assessments that the formation of a new Israeli government could lead to the easing of some measures, while the continuation of the outgoing government's policies could renew momentum toward sanctions. The report noted that the EU officially welcomed the elections and the high voter turnout, expressing its desire to work with the next government, while the newspaper estimated that European parties had hoped for a government that would facilitate cooperation on settlements, settler violence, and the reconstruction of the Gaza Strip. Steps proposed to improve relations include lifting the freeze on direct financial support to Israeli government institutions worth tens of millions of euros, which the European Commission had suspended, suspending some discussions on trade sanctions, and advancing agreements stalled for more than three years.