After meeting the bloc’s foreign ministers in Brussels, Kaja Kallas said it was “very clear” that Israel had breached its human rights commitments in Gaza and the West Bank.
She added if the situation for Palestinians did not improve, the EU could discuss “further measures and come back to this in July”.
But Kallas declined to spell out details: “The concrete question is what then we [the EU] are able to agree?
“But right now, the most important thing is to improve the situation on the ground, improve the lives of people in Palestine and stop the suffering and also human toll that we see there every day.”
The foreign ministers discussed the EU’s relationship with Israel after a report by Kallas’s team found “indications” that its ally was in breach of human rights obligations over the catastrophic humanitarian situation in Gaza and settler violence in the West Bank.
A review of the EU-Israel association agreement – a trade and cooperation pact – was triggered last month by 17 member states in protest at Israel’s blockade of humanitarian aid to Gaza.
On Monday, only Spain called for outright suspension of the agreement although other strong supporters of the Palestinians – Belgium, Ireland and Sweden – stressed the need for action.
However, Germany, Greece and Italy were among the countries that voiced opposition to suspending the agreement.
The EU report is largely based on findings from UN bodies and the international court of justice.
While the overall pact can be suspended only by unanimity, parts of the relationship agreement – trade or Israel’s participation in the EU’s Horizon research programme – could be suspended by a weighted majority vote.
The association agreement, which came into force in 2000, underpins a trading relationship worth €68bn (£58bn) between the 27 EU countries and Israel. The bloc is Israel’s largest market, accounting for about a third of its exports.
