Israeli start-ups, some in dual-use areas such as drones, have already received €170 million from the EU through Accelerator grants

Destruction in the Gaza Strip. Photo credits: Emad El Byed / Unsplash
EU governments have not yet agreed to back proposals by the European Commission to suspend Israel from part of Horizon Europe, as alarm grows in Europe at mass famine in Gaza.
Earlier this week, the Commission put forward a plan to block Israel from receiving new European Innovation Council Accelerator grants, which have already funnelled nearly €170 million into the country’s start-ups, some in dual-use areas such as drones.
The Commission warned that “virtually the entire Gaza population is at risk of famine” due to a blockade of aid by Israel, and that the country had violated human rights conditions in its association agreement with the EU, which underpins the country’s association to Horizon Europe.
But a qualified majority of EU states are not yet on board with the suspension, with Germany the biggest player unwilling to sanction Israel.
“I wouldn't bet on fast developments at this stage,” said one EU country’s science counsellor, speaking on condition of anonymity.
Another science counsellor, also speaking anonymously, said there needed to be a thorough discussion over the summer on the Commission’s measures. “We shouldn’t rush anything,” they said.
But critics of Israel want action now to increase diplomatic pressure. The EU “should boycott them in any way, not just in Horizon,” said Rudi Kennes, a Belgian MEP with the Left political grouping, who has led calls to expel Israel.
Israel’s Foreign Ministry called the Commission’s proposal for partial suspension “mistaken, regrettable, and unjustified.”
German position
One of the key questions is whether Germany, which has so far refused to back sanctions against Israel, will change its stance on scientific sanctions.
“Germany cannot endorse such a measure for the time being,” said a figure in German politics, speaking anonymously.
Germany has a “special responsibility” for Israel, they said, and a “very high” threshold would need to be met before taking concrete action, for example if Israel continued to displace Gazans by force or if the humanitarian situation did not improve.
An assessment by the EU’s diplomatic arm, the European External Action Service, in June concluded that “90% of the population of Gaza has been displaced, often multiple times, due to Israel’s military operations and to repeated displacement orders,” according to a leaked report by EU Observer.
Missile defence
Germany’s position on Israel is however coming under increasing pressure, both internally and from other EU states. The Social Democratic Party, junior partners in the governing coalition, has called on Berlin not to block the suspension of Israel’s association agreement with the EU, at least when it comes to trade.
The Dutch government has also explicitly backed the Commission’s plan to suspend Israel from parts of Horizon Europe.
However, Berlin’s hesitation may also be due to its $3.5 billion deal with Israel to buy one of the country’s Arrow 3 long-range missile defence systems.
Germany’s need for this Israeli weapon system was a “technical consideration” and “might play a certain role” in why Berlin had refused to contemplate sanctions so far, said the figure in German politics, but stressed it was not a “dominant” factor.
€170 million to Israel
The Commission’s proposal would see Israel blocked from new Accelerator grants awarded by the European Innovation Council. These typically go to start-ups with close-to-market products seen as groundbreaking, with up to €2.5 million in grants and up to €10 million in equity investments.
Since 2021, 46 Israeli companies have received €105.5 million in grants and €63.8 million in equity, according to the Commission.
Many of these start-ups are in health, environmental technology, or other civilian fields. However, a few are in dual-use areas, such as cybersecurity or drones.
One recipient, an Israeli start-up called Sightec, has been given nearly €2.5 million to develop a “unique platform [. . .] that enables drones to perform complex tasks autonomously.”
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The grant’s EU project description envisages that the platform will be used for logistics. However, Sightec also boasts of offering anti-jamming and GPS-free technology for drones that could be used in “homeland security” or “aerospace or defence.”
Reports from Gaza indicate that Israel has repeatedly used drones in its offensive, including in the shooting of civilians. Sightec has been asked for comment.
Since grants such as Sightec’s have already been awarded, they would not be clawed back under the Commission’s proposal.
Israeli universities
Meanwhile in Israel, at least some academic bodies have stepped up their criticism of the government’s blockade of Gaza.
On 28 July, presidents of five Israeli universities – the Weizmann Institute of Science, Hebrew University, the Open University of Israel, Tel Aviv University, and the Technion –issued a statement calling on the Israeli government to “intensify efforts to address the severe hunger crisis” in Gaza.
“We are appalled by recent statements issued by ministers and members of the Knesset advocating for the intentional destruction of Gaza and the forced displacement of its civilian population,” it says.
The statement has not been publicly posted in Hebrew, but a Hebrew version was circulated to Israeli journalists, according to a spokesperson for Tel Aviv University, and it has received coverage in local Israeli press.
However, four of Israel’s nine public universities – Bar-Illan, Haifa, Ben-Gurion and Ariel – did not sign the statement.
“The things that Israel is doing, [that] we are doing, because it has to do with every single one of us, in Gaza is absolutely unbelievably horrible,” said David Harel, president of the Israel Academy of Sciences and Humanities.
Earlier this month, Harel issued a statement demanding Israel’s government “re-instantiate the basic health and life infrastructures, including regular flow of essential humanitarian aid, food, water, medical equipment, medicines and fuel.”
“This is a defining moral moment for the state of Israel and its place in the community of civilized nations,” he wrote.