Beyond the headline-grabbing tariffs, the European Union’s proposal includes a more subtle but immediate exercise of power: the suspension of €32 million in bilateral funds. This move demonstrates how the European Commission can wield its direct control over the EU budget as a potent tool of foreign policy.
This €32 million is not a vast sum, but its significance lies in the speed and authority with which it can be suspended. Unlike the trade tariffs, which require the complex and uncertain approval of 27 member states, these funds are often under the direct administrative control of the Commission.
This “power of the purse” allows the Commission to send an immediate and tangible signal of its displeasure without waiting for a lengthy political process. It is a way of showing that the EU’s criticism is not just talk and that there are immediate financial consequences for actions it opposes.
The suspension of these funds, which support various joint EU-Israel programs, also has a symbolic impact. It represents a halt in cooperation, a practical downgrading of the relationship from one of partnership to one of contention. It is a clear message that business as usual is over.
This budgetary lever is a key instrument in the Commission’s foreign policy toolkit. While the larger economic weapons require the backing of the member states, the ability to turn off the financial tap, even on a smaller scale, gives the EU’s executive branch a degree of autonomous power to react swiftly to world events.
The Power of the Purse: How the EU Commission is Wielding its Budgetary Power
