The EU is again ready to sacrifice competitiveness and credibility on the altar of ideology. Recently, the president of the Commission, Ursula von der Leyen, proposed a partial suspension of the Association Agreement with Israel on trade-related matters. Such a decision would hurt Israel’s economy disproportionately. Although this is not true vice versa, the EU does import crucial products from Israel, especially in the field of defense and dual-use technologies. The significance of Israeli defense and dual-use exports to Europe is not primarily their volume: it is that they are constantly tested on the ground. Ukraine also benefits from these technologies as European militaries can only supply Ukraine with arms because they send older materiel to Ukraine and restock with cutting-edge equipment to fill the capability gaps created by the aid.
This is not the first time ideology or moralizing has been prioritized over economic realities. Europe lags behind its chief rivals in terms of competitiveness. The EU—with von der Leyen playing a substantial role—has jeopardized its automotive industry for the sake of the green transition, rushed to decouple from Russian energy as part of the sanctions against Moscow, and adopted the world’s first strict AI regulation—while its competitors have done none of that. Europe seems to always forget what its competitors do not: the harsh reality of economic and security self-interests.
