While the European Union’s proposed sanctions are aimed at pressuring the Israeli government, a potential and deeply ironic consequence could be economic harm to the very Palestinian population the EU seeks to help. This unseen cost is a major complication in the ethics of the sanctions debate.
The Israeli and Palestinian economies are deeply intertwined. Thousands of Palestinians from the West Bank work in Israeli industries and agriculture, including in sectors that could be targeted by EU tariffs. If Israeli farms or factories lose their European market, these Palestinian workers could be among the first to lose their jobs.
Furthermore, the Palestinian Authority itself derives a significant portion of its revenue from taxes collected by Israel on its behalf, much of which is related to economic activity involving trade with Europe. A downturn in the Israeli economy caused by EU sanctions could therefore lead to a reduction in these crucial transfers, further destabilizing the PA’s finances.
This creates a painful dilemma. The EU’s tool for pressuring Israel—economic damage—is not a precision weapon. It is a blunt instrument whose shockwaves could easily cross the Green Line, harming Palestinian livelihoods and potentially undermining the stability of the Palestinian Authority, which the EU simultaneously supports with direct aid.
Proponents of sanctions argue that this short-term pain is a necessary price for achieving a long-term political solution that would ultimately benefit the Palestinians. However, critics warn that the measures could backfire, increasing Palestinian economic despair without achieving any meaningful political change.
