EU proposes suspending funding for Israeli start-ups
The European Commission has proposed suspending funding for Israeli start-ups in light of the dire humanitarian situation in Gaza. It is unclear at this time how much funding would be affected by the decision, which still requires the approval of member states.
“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,” the Commission said in a statement on Monday.
A report presented to EU member states at the end of June found that Israel had breached an article of the association agreement between Israel and the EU regarding respect for human rights.
Since then, the European Commission has been working on its response, debating several possible options, including banning certain exports and revising its visa policy. The proposal presented on Monday is one of the more restrained options.
"It does not affect the participation of Israeli universities and researchers in collaborative projects and research activities under Horizon Europe"
The Commission wants to partially suspend Israel's participation in the Horizon Europe research programme. Specifically targeted are start-ups funded under the European Innovation Council's Accelerator programme.
This programme focuses on funding "disruptive innovations and emerging technologies that have potential dual-use applications", including cybersecurity, drones and artificial intelligence. It has an overall budget of 634 million euros for 2025. It is unclear how much of this budget had been allocated to Israeli start-ups or will be suspended.
The Commission describes the measure as "targeted' and reversible". "It does not affect the participation of Israeli universities and researchers in collaborative projects and research activities under Horizon Europe," they said. The proposal will be submitted to EU member states for approval at a meeting on Tuesday.
Since the start of the war in Gaza, there has been a significant divide among the bloc's member states in their stance towards Israel. While several countries, including Germany, insist on Israel's right to defend itself, others, such as Spain, have denounced its actions against Palestinians in Gaza as genocide.
Protesters in Brussels, 15 July 2025 © BELGA PHOTO MATEUSZ KUKULKA
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