From Farming to Tech: Europe’s Boycott Knocks on Israeli Occupation’s Door

The Israeli Occupation’s economy suddenly became a silent battleground, driven by European consumers and some governments increasingly using economic pressure instead of diplomatic complicity.

The latest European actions hit stores, halted purchases, and froze investments as a response to the ongoing Israeli genocide in Gaza since October 2023.

From Dublin to Madrid, Milan to Berlin, the facade of “normal relations” is gradually falling away, while calls for economic boycotts are moving from the sidelines into mainstream policy.

Now, it’s nearly impossible to sell a soda from an ‘Israel’-supporting company in Italy or import fruit from West Bank settlements into Germany without sparking ethical controversy.

Irish Blow

In a groundbreaking move for Europe, Ireland passed a law on June 27, 2025, banning the import of any goods or products originating from Israeli Occupation settlements in the occupied West Bank and East Jerusalem.

This legal shift reflects a growing popular demand to confront Israeli Occupation violations.

Irish Foreign and Trade Minister Simon Harris announced the decision, marking a turning point after the government approved the bill and sent it to parliament for full legislation. The law is backed by the International Court of Justice’s July 19, 2024 ruling condemning Israeli settlement policies.

Under the new legislation, imports from Israeli Occupation settlements will be treated as customs offenses punishable under the 2015 Customs Law, potentially ending dozens of trade agreements with Israeli companies exploiting occupied lands.

Meanwhile, Spanish Prime Minister Pedro Sanchez called on the EU to immediately suspend its partnership agreement with “Israel,” condemning the EU’s “moral double standards” for imposing harsh sanctions on Russia over Ukraine, while ignoring the Israeli Occupation’s “blatant human rights violations in Gaza.”

Widespread Campaigns

These official actions coincide with shifting commercial attitudes across Europe. Boycott campaigns are gaining real traction even in countries usually cautious about escalating tensions with Tel Aviv, such as Germany.

Yedioth Ahronoth (Ynet) reported on June 26 that Israeli sources and farmers are increasingly worried about changes in European supply chains.

“In the past two weeks, we’re hearing louder voices calling for a boycott in Germany, and that’s new,” a potato exporter told Ynet.

In Italy, the popular store chain Coop Alleanza 3.0 took a firm stance, halting the sale of various Israeli Occupation products in solidarity with Palestinian civilians.

The company stated it can no longer ignore the scale of violence faced by Gaza’s population, noting it removed peanut butter, tahini, and SodaStream products from its shelves.

The chain also introduced “Gaza Cola” as a symbolic alternative reflecting popular solidarity with the Palestinian cause.

These legal, consumer, and symbolic measures highlight a clear fracture in economic ties between “Israel” and its major European trading partners.

This raises questions about the dawn of a new phase of economic isolation for Tel Aviv, reminiscent of the boycott movement that helped dismantle apartheid South Africa.

2025 in Review

The year 2025 was far from ordinary for Israeli Occupation’s economy amid the ongoing assault on Gaza and mounting popular and official European pressure.

Tel Aviv faced a creeping economic isolation that began to erode key sectors and strain vital financial institutions.

By midyear, estimates from the Bank of Israel revealed the combined cost of the war—including military spending, economic losses, and the impact of the European boycott—reached around $67 billion, one of the highest figures in Israeli Occupation crisis history.

Even after accounting for $14.5 billion in U.S. aid, the deficit remained staggering, highlighting the economy’s fragility under external pressures, according to Bulgaria’s Modern Diplomacy.

Foreign trade took a severe hit as the European Union, which accounts for more than 32% of the Israeli Occupation’s merchandise trade, gradually pulled back from its agreements.

This came amid possible suspension of partnership deals and growing boycott campaigns across Europe, particularly targeting agricultural and tech products from the Israeli settlements.

The Israeli currency wasn’t spared either; starting January 2025, foreign capital quietly began exiting markets, while European direct investments in technology and real estate sharply declined.

On May 23, 2025, the U.S.-based Atlantic Council quoted analysts expressing deep concerns over alarming projections.

They predicted that potential losses for the Israeli Occupation’s economy over the next decade could reach $400 billion, with nearly half stemming from international boycotts and declining global confidence in the Israeli market.

Sectors Affected

The impact of Europe’s boycott on “Israel” went beyond symbolic and political campaigns; its effects quickly showed up in the Israeli Occupation’s economic figures, revealing a sharp decline in key performance indicators.

By the end of 2023, just two months after the Israeli aggression on Gaza began, Israel’s economy saw a 29% drop in foreign direct investment.

The same decline was recorded in 2024 and is expected to continue through 2025, as per the UN Trade and Development (UNCTAD).

This situation has made foreign companies wary of investing in a country facing growing criticism over its war crimes and violations in the occupied Palestinian territories.

The first quarter of 2024 brought no relief for “Israel,” as new property sales dropped by 32%, with foreign investors—especially from Western Europe—avoiding purchases of apartments in Tel Aviv or luxury projects in Occupied Haifa.

Concerns over “reputational risks” have become a key factor in investment decisions, even in sectors once considered safe havens for capital.

The Israeli Occupation’s technology sector, long a pillar of its economic strength, also suffered a heavy blow.

At the end of 2024, the government’s annual technology report showed a 42% decrease in investment deals for startups and advanced tech companies.

This followed major European funds withdrawing support from Tel Aviv-based firms, fearing public backlash and legal boycotts in their home countries.

The tourism sector fared no better, with international visitor numbers plunging 80% from January 2024 through the same month in 2025.

Hotels in Occupied Jerusalem and Tel Aviv have become nearly empty, causing the hospitality and related service sectors to lose their main sources of income, according to the Anadolu Agency, in May 2025.

Illegal Settlements in Decline

Agriculture is among the sectors hit hardest by the European boycott, as Europe has long been a stable market for Israeli agricultural products.

However, growing public opposition has led major retailers like Germany’s Aldi to reduce imports of potatoes and fruits from the illegal Israeli settlements, amid fears of consumer backlash.

“There’s been a major shift in sentiment against us in Germany in recent weeks, driven by public opinion around the Gaza war. We’re nearing the end of our sales season there, and we’ve been subtly told that Aldi won’t carry us anymore. Officially, they say it's because there’s fresh local produce now, but when you dig deeper, it’s political. Aldi has decided to stop selling Israeli goods on its shelves,” Ofer Levin, an Israeli agricultural exporter, told Ynet.

A fruit exporter who supplies avocados, citrus, and peppers — including to Co-op branches in Western Europe — said: “We’ve been hearing for a year that things are getting more complicated. It started under the radar but is becoming more overt as the Gaza headlines keep coming.”

Similarly, Israeli industrial zones in the occupied West Bank, such as the Barkan Industrial Area, face increasing reluctance from European companies to invest or supply, due to these entities being listed on ethical boycott registers maintained by European banks and pension funds.

In November 2024, DBIO (Don’t Buy into Occupation), an organization dedicated to exposing ties between European financial institutions and illegal Israeli settlement projects in occupied Palestinian territories, reported that 822 European financial institutions remained linked to economic activities in the illegal settlements. However, human rights pressure has pushed some to withdraw or freeze their dealings.

Amid this decline, “Israel’s” Ministry of Finance revealed a $7.3 billion trade deficit increase in the first quarter of 2025 alone.

This signals mounting challenges for the Israeli Occupation in balancing imports against exports, as it loses European customers one by one.