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Germany and Italy have shot down a bid by Spain, Ireland, and Slovenia to suspend the European Union’s trade and cooperation agreement with Israel.

Some shit you should know before you dig in: If you’re unaware, the EU has had an agreement with Israel since 2000 that governs political cooperation and trade between the two sides, granting Israel preferential access to the EU market. It includes a human rights clause (Article 2), which makes respect for democratic principles a condition of the deal. Spain and Ireland first pushed for a review of the agreement in 2024, and a formal EU assessment later concluded Israel had “likely” breached its obligations under the pact. The push to suspend the agreement gained momentum after Israel launched ground operations in Lebanon, passed a new law imposing mandatory death sentences on Palestinians convicted in military courts of killing Israelis, and continued what critics describe as a campaign of settler violence in the West Bank occurring “with absolute impunity.” This led Spain to renew the effort to rip up the agreement between Israel and the EU. Notably, trade between Israel and the EU reached roughly $47 billion in 2024, making the EU Israel’s largest trading partner.

What’s going on now: At a meeting of EU foreign ministers, Germany and Italy led the opposition to suspension, effectively killing the proposal. German Foreign Minister Johann Wadephul called it “inappropriate,” saying the situation required “critical, constructive dialogue” with Israel. A full suspension requires unanimous support from all 27 member states (which was never in reach), but even a partial suspension requiring only a weighted majority failed to gain traction. EU foreign policy chief Kaja Kallas said the bloc “certainly does not have that on the table anymore.”

Spain, Ireland, and Slovenia argued the EU could no longer stay on the sidelines. During the meeting, Spanish Foreign Minister José Manuel Albares said, “Today Europe is playing for its credibility. We have to tell Israel clearly that it has to change course.” Amnesty International called the outcome “a moral failure” showing “brazen contempt for civilian lives.”

This all comes as Israeli Prime Minister Benjamin Netanyahu has warned that countries waging “diplomatic war” against Israel will pay “an immediate price.” Roughly two weeks ago, that threat materialized after Israel booted Spain from a US-led civil-military coordination center overseeing the Gaza ceasefire.