Spain, along with Ireland and Slovenia, led a proposal to suspend the association agreement with Israel, claiming that Israel is violating the human rights clause in the agreement.
The proposal was removed from the agenda because it had no chance of passing against the bloc of Germany, Italy, and the Central European countries. The Association Agreement remains in place, and Israel will continue to enjoy customs benefits and economic cooperation with Europe.
In parallel with discussions on Israel, the European Union's foreign ministers decided to significantly expand sanctions against Iran:
Despite the heavy pressure exerted by Spanish Prime Minister Pedro Sanchez, the move was described in many European capitals as "extreme and biased.".
Key countries such as Germany, Italy and Hungary strongly opposed the move. Italian Foreign Minister Antonio Tajani explicitly stated that "blocking a trade agreement is not a useful tool" in the current circumstances.
EU law states that agreements will only be terminated when a sweeping, 'unanimous' decision is made across all EU countries.
Supported the Spanish proposal: Spain, Ireland, Belgium, Slovenia and Luxembourg. Opposed the Spanish proposal: Germany, Italy, Hungary, Czech Republic, Austria, Greece and Cyprus.
France and the Netherlands tried to offer an 'intermediate' proposal, under which they would toughen the tone of policy statements and impose personal sanctions on 'extremist elements' in Israel.
The Prime Minister's Office issued a statement: "The State of Israel welcomes the decision of the European Union foreign ministers to unanimously reject the inappropriate and dangerous attempt to suspend trade agreements between Israel and the EU.
""The initiative led by Spain, driven by extreme political considerations and a lack of understanding of the reality on the ground, was rejected by the responsible countries in Europe who understand that Israel is the most democratic and stable anchor in the Middle East.
""The Prime Minister's Office would like to thank our friends – Germany, Italy, the Czech Republic, Hungary and Austria – who stood guard against the campaign of slander and hypocrisy.
""Attempts at economic isolation will not weaken our hands in the war against the Iranian axis of evil and its proxies. Israel will continue to protect its citizens and fortify its economic and political position against any attempt to harm its sovereignty or rights in the international arena.""
In parallel with the announcement from the Prime Minister's Office, Foreign Minister Sa'ar said that the Foreign Ministry is working in open and secret ways with all European capitals to make it clear that any violation of trade agreements will result in a decisive Israeli response that will also harm the interests of European companies operating in Israel.
Spanish Foreign Minister José Manuel Albers issued a statement: "Today, Europe's credibility was put to the test, and unfortunately, the European Community failed to convey a firm message. Spain, together with its partners, presented a clear demand: if the Association Agreement is based on respect for human rights, then its immediate suspension is the most obvious and moral step in light of the blatant violations we are witnessing. We cannot continue to maintain 'business as usual' while international law is being trampled on.".
""Continuing to grant Israel preferential partner status, while the humanitarian situation is deteriorating, undermines the fundamental principles on which the European Union was founded.
""Spain will not cease its efforts and will continue to work together with other countries to ensure that Europe does not stand aside in the face of the suffering in Lebanon and Gaza. We must act consistently in every arena and in every crisis, otherwise we will lose our moral standing in the world.""
