The UK, France and Canada have created new momentum for ending trade with illegal settlements. The Commission should now seize it and propose an EU-wide ban.
10 September 2026
By Martin Konečný
The initiative by the UK, France and Canada to ban trade with illegal Israeli settlements, backed by further European countries, represents a significant policy shift by leading Western countries. This creates new momentum for an EU-wide ban and puts renewed spotlight on the European Commission, which has resisted such action so far.
President Ursula von der Leyen’s State of the Union speech on 16 September is an opportunity – perhaps the last one – for the Commission to change course and announce that it will table a proposal to ban settlement trade under the Common Commercial Policy (CCP).
If von der Leyen only offers empty rhetoric without action, it would make for a deeply embarrassing contrast with the British-French-Canadian leadership and signal the EU’s inability or unwillingness to stand together with key allies in upholding international rule of law. (Canada’s Prime Minister Carney will be present at the speech as a guest of honour.)
Equally important news is that neither US President Trump nor Secretary Rubio condemned or even expressed opposition to the UK-led initiative in their reactions. This removes one of the underlying fears in the Berlaymont and in some EU capitals and should be taken as a US green light.
Israel’s opening of a construction tender for the E1 settlement on 18 August – crossing a long-standing EU red line – is another major reason for a Commission rethink.
Besides the Commission, Germany and Italy, the two largest resistant member states, should reconsider their positions in light of these latest developments – and enable the EU to move.
Likewise, smaller potential “swing” states such as Austria, the Baltics, and Malta (some of which joined the UK-led statement on E1 last month) should now feel more secure to come out in support of EU action.
That said, the Commission does not need prior approval from member states to exercise its competence and table a proposal under the CCP. The existing level of member state support (at least 11) gives the Commission ample political room to move ahead – certainly more than the room it has for continued stalling. The new international momentum also reinforces the prospect that a qualified majority would be found once the Commission tables a proposal that is then further negotiated in the Council and the EP. Obligations under international law – as laid out by the International Court of Justice – and the EU’s own treaties bind the Commission to act.
Moreover, France’s commitment to ban trade with settlements at the national level – thus joining Spain, Ireland, the Netherlands and Belgium – strengthens the need for a common EU approach to ensure cohesion of the internal market. If the EU does not move, more member states are likely to follow and legislate nationally.
It should now be clear to the Commission President that the issue will not go away and the only way to settle it is by adopting an EU-wide ban through qualified majority. The arguments given by the Commission to justify its wavering have not stood up to scrutiny. The Council Legal Service has confirmed that such a measure can be adopted under the CCP, a conclusion shared by over 100 legal experts. EuMEP and CIDSE have shown how an appropriate EU trade regulation can be designed and implemented.
The announcements by the UK, France and Canada – three members of the G7 and two permanent UN Security Council members – mean that banning settlement trade has now been fully normalised within the Western political mainstream. Von der Leyen can either join the momentum or leave the EU behind – divided and diminished.