European leaders have urged the European Commission to prepare legal measures aimed at curbing imports from Israeli settlements, ending three months of inaction that EU diplomats described as a source of irritation in multiple capitals.

"The European Council notes the Commission plan to submit options ahead of the Council session on 13 July 2026, given the worsening conditions linked to unlawful settlements," EU leaders stated in their Brussels summit conclusions on Friday (19 June).

The July reference points to the upcoming informal gathering of EU foreign ministers.

A group of member states including France, Sweden, Spain, Belgium, and Ireland has advocated for an import prohibition on settler goods for no less than three months.

EU heads reviewed "penalties targeting radical and aggressive settlement conduct in the West Bank; bloc-wide measures against hardline ministers; and stronger separation between Israeli territory and unlawful settlements to ensure trade rules comply with global standards," French president Emmanuel Macron told journalists following the meeting.

The Commission delay in advancing ideas had generated irritation during discussions, according to an EU diplomat, who characterized the situation as a political stance by the executive body responsible for initiating steps.

Standard EU procedures do not require waiting for clear majority backing before introducing proposals, the diplomat noted.

Israeli supporters such as Germany, Austria, the Czech Republic, Hungary, and Slovenia new administration opposed the idea, while the Commission debated whether consensus or qualified majority voting applied.

"We anticipate the Commission proposal concerning unlawful settlements," Irish prime minister Micheál Martin stated on Friday.

"The EU must convey a firm message that current events in Gaza and the West Bank cannot be accepted," he added.

EU diplomats assessed that 10 to 12 member states support barring settlement imports, with a few others willing to review the idea.

In total, the EU takes in 15 times more goods from illegal West Bank settlements than from Palestinian sources.

The leaders message to the Commission under Ursula von der Leyen arrived alongside fresh reports of rapid settlement growth in the West Bank.

Between January 2023 and April 2026, the UN recorded full or partial displacement affecting 116 Palestinian communities in the West Bank, forcing at least 5,910 individuals from their homes.

EU leaders also condemned hardline Israeli minister Itamar Ben-Gvir for remarks targeting some of the 400 Gaza aid flotilla participants in May, among them EU citizens.

On Friday he posted on X that "all of Lebanon must burn" following the deaths of four Israeli soldiers at the hands of Lebanese fighters.

Leaders further dismissed Israel plans to seize control of the Gaza Strip.

"The European Union firmly rejects Israel announcement that it intends to control 70 percent of Gaza territory," the summit conclusions stated.

The gathering overlapped with Israeli foreign minister Gideon Sa'ar criticism of EU foreign policy chief Kaja Kallas.

Sa'ar announced on Thursday he would end all engagement after she allegedly labeled Israel an apartheid state during a private session in Mexico on 21 May, according to an unnamed source cited by Euractiv.

Kallas-Israel clash

"I will not address remarks made or omitted in private settings. Such matters arise weekly. We should focus on my public statements, which reflect the European stance," Kallas said on Thursday.

"We do not always align with Israeli views," she noted. "We condemn violent settlements in the West Bank as they block any two-state outcome."

Macron voiced parallel worries, noting that "settlement expansion in the West Bank erodes chances for a Palestinian state and two-state solution, requiring swift response."

German chancellor Friedrich Merz dismissed the term attributed to Kallas, stating: "I do not endorse that wording [apartheid]."

Estonian prime minister Kristen Michal, from the same liberal group as Kallas and a prior Estonian leader, expressed hope "this matter will be resolved among allies."

"Kaja Kallas has stated publicly that she speaks for the EU position, which should stand, and hopefully Israel recognizes that Europe remains its strongest partner in a rules-based system," Michal said.

In his X message, Sa'ar charged Kallas with "antisemitism and blood libel."

Israel had previously declared Kallas predecessor, former EU foreign chief Josep Borrell, unwelcome after his Gaza critiques.

While Sa'ar action may have aimed to undermine Kallas ahead of any settler-ban draft at the 13 July foreign ministers meeting, domestic Israeli politics could also have played a role.

"Any move by Sa'ar requires viewing his standing inside the Likud party," said David Issacharoff, a Haaretz journalist in Israel.

"Some in Likud might label him a traitor for joining opposition figures Bennett and Lapid in 2021 to challenge Netanyahu. Now back in the party ahead of July primaries for the September general election list, he must demonstrate consistent right-wing loyalty," Issacharoff explained.

"Expect more right-wing posturing from the foreign ministry under his direction, including the Kallas episode," Issacharoff added.