“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 after a meeting on Monday.
The Israeli Foreign Ministry fired back in a post on X, calling the proposed suspension “mistaken, regrettable, and unjustified” and warning that the decision “only serves to strengthen Hamas and therefore undermines the chances of reaching a ceasefire.”
The suspension is focused on the European Innovation Council, a €10.1-billion program under Horizon Europe. It would affect Israeli entities participating in the EIC Accelerator, which allows the Commission to take a stake in research-heavy and capital-intensive tech startups.
Technologies funded under the EIC Accelerator “have potential dual-use applications, such as in cybersecurity, drones, and artificial intelligence,” the Commission said.
Israel has faced increased condemnation from EU countries after the U.N. warned children and adults in Gaza are facing “severe malnutrition.”
Israeli universities and researchers funded through the more traditional Horizon Europe programs would be unaffected.
The decision still needs backing from a qualified majority of EU countries.
This story has been updated.