At the peak of criticism against Israel: preparations for a shake-up in the European Union

The European Union is preparing to accelerate the restructuring of its diplomatic foreign service. As part of the reform, many powers are expected to be reduced and transferred to the European Commission. Member states are criticizing the current inability to advance diplomatic initiatives effectively. Recently, unusual criticism has been directed at the Union's foreign policy chief, Kaja Kallas, following reports of tension between the two most powerful women in the Union.

The European Union is examining a significant change in its diplomatic structure, which may lead to a partial dismantling of the European External Action Service (EEAS) and the transfer of some of its powers to the European Commission. This move is being promoted following demands from France and Germany to carry out a broad reform of the Union's foreign policy mechanism by the end of the year, as reported this morning (Wednesday) in the Financial Times. Senior officials in the European Commission have already begun to examine which roles and powers of the EEAS can be transferred to existing departments in the Commission. This is a move that could partially reverse one of the largest institutional changes the Union has made in the last two decades.

Crisis of confidence and the role of Israel

The European External Action Service, headed by Kaja Kallas, has recently been under criticism from European capitals. Member states believe that the service struggles to coordinate effective responses to major crises facing the Union, including the wars in Ukraine and Iran, the aggressive foreign policy of US President Donald Trump, and the increasing use of economic pressure as a political tool.

Another central factor that has become a critical point of contention within the Union is the attitude towards Israel. Throughout the war, the Union has struggled to reach a unified and unequivocal position, against the backdrop of calls by several countries to harden the attitude towards Jerusalem and even impose sanctions or consider an arms embargo.

Financial savings and structural changes

According to the plan being examined, the goal is to reduce duplication between various bodies and create better alignment between the Union's diplomatic work and the powers already held by the European Commission, such as trade, aid, digital regulation, and technology. The move also has a budgetary aspect, as member states are putting pressure on Brussels to reduce spending as part of the negotiations on the next multi-year budget for 2028–2034.

Supporters of the reform argue that transferring a large part of the foreign service budget—which stands at about one billion euros per year—to the Commission could make the Union's foreign policy more coordinated. However, this is not a plan to transfer the entire foreign service to the Commission; a reduced foreign service is expected to remain outside the Commission, continuing to be responsible for peacekeeping missions and military training.

Next steps

France and Germany, the two largest economies in the bloc, want to use the upcoming summit of Union leaders to discuss reform ideas. Paris and Berlin have even proposed giving Kallas a stronger personal role in the future structure, including broader oversight of the European Commission's expanded foreign relations portfolio.

Yesterday, Euronews reported that 11 European Union member states, including France and Germany, are demanding a reform of the Union's diplomatic work and the abolition of the need for unanimous decisions on foreign policy issues. They argue that the need for consensus often harms the Union's ability to respond. In June, reports emerged regarding unusual tension between European Commission President Ursula von der Leyen and Kaja Kallas, largely concerning their differing attitudes towards Israel and the steps the Union intends to advance against Jerusalem.