Middle Eastern Politics And Society News

Europe moves to sanction settlement-linked economy in Israel

Europe is preparing sanctions on settlement goods and on firms that finance or facilitate settlement expansion, which could tighten Israel’s settler economy even though direct export losses to Europe are small; the measures may also trigger a broader chilling effect on Israeli trade via banks and supply chains. Companies in settlements are diversifying to other markets, and the ultimate impact will depend on how Europe finalises the sanctions and on Israel’s electoral outcomes.