Published by Global Banking and Finance Review
Posted on July 31, 2025
By Sarah Marsh
BERLIN (Reuters) -Germany's foreign minister said on Thursday recognition of a Palestinian state should come at the end of talks on a two-state solution but Berlin would respond to any unilateral actions, after citing "annexation threats" by some Israeli ministers.
Johann Wadephul issued the statement before heading off to Israel and the Palestinian territories on a trip Berlin has billed as a fact-finding mission amid heightened alarm over starvation in Gaza.
His remarks marked Germany’s strongest warning yet to Israel as Western nations intensify efforts to exert pressure. In recent weeks, Britain, Canada and France have all signaled their readiness to recognise a Palestinian state in Israeli-occupied territory at the United Nations General Assembly this September.
However, critics argue that Germany’s response remains overly cautious, shaped by an enduring sense of historical guilt for the Holocaust and reinforced by pro-Israel sentiment in influential media circles, weakening the West’s collective ability to apply meaningful pressure on Israel.
In his statement, Wadephul reiterated Germany's stance that a sustainable resolution to the Gaza war can only be achieved through a negotiated two-state solution - a Palestinian state co-existing in peace alongside Israel.
"In light of open annexation threats from parts of the Israeli government, a growing number of countries - including many in Europe - are now prepared to recognise a Palestinian state even without a prior negotiation process. The region and the Middle East peace process are therefore at a crossroads," Wadephul said.
"That process must begin now. Should unilateral steps be taken, Germany too will be compelled to respond."
Israeli Prime Minister Benjamin Netanyahu's coalition includes two far-right parties that call for the outright conquest of Gaza and re-establishment of Jewish settlements there. Two senior government ministers also voiced support on Thursday for annexing the Israeli-occupied West Bank.
The death toll from almost two years of war between Israel and Palestinian militant group Hamas in Gaza surpassed 60,000 this week. A growing number of civilians are dying from starvation and malnutrition, Gaza health authorities say, with images of starving children shocking the world and intensifying criticism of Israel over its curbs on aid into the enclave.
Germany, together with the United States, has long remained one of Israel's staunchest allies and largest arms suppliers.
German officials say their approach to Israel is governed by a special responsibility, known as the "Staatsraison", arising from the legacy of the Nazi Holocaust. They say they can achieve more through diplomatic back channels than public statements.
PRO-ISRAEL GERMAN MEDIA
The largest media group in Germany, Axel Springer, which owns its best-selling daily Bild as well as other publications like Welt and Politico, includes a specific pro-Israel commitment in its core corporate principles.
The clause commits Axel Springer and its employees to a pro-Israel editorial stance.
Bild published a story on Thursday, for example, denouncing a "hunger campaign" against Israel and moves by Western countries to raise pressure on the country which it said had prolonged the war in Gaza by emboldening Hamas to leave ceasefire talks. The paper praised Germany for not doing so.
Another Bild story on Thursday denounced a "campaign designed to morally destroy Israel".
Chancellor Friedrich Merz has long been pro-Israel. In February, he said he would find a way for Netanyahu to visit Germany without being arrested under a warrant by the International Criminal Court.
But the tone has shifted in Berlin in recent weeks, in tandem with a shift in public opinion, with a poll released on June 4 showing 63% of Germans saying Israel's military campaign in Gaza has gone too far.
Merz said on Monday that steps like suspending the European Union pact governing relations with Israel were on the table now, in order to raise pressure on the country over the "catastrophic" situation in Gaza.
The EU's executive body recommended on Monday curbing Israeli access to its flagship research funding programme but the proposal does not yet have enough support to pass, with heavyweight Germany in particular still uncertain.
(Reporting by Sarah Marsh; editing by Mark Heinrich)
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