Germany is re-evaluating its Middle East policy and considering recognition of Palestinian statehood, in a shift prompted by Israel’s handling of the Gaza humanitarian crisis and growing international demands for a two-state solution. German Foreign Minister Johann Wadephul, ahead of a visit to Israel and the West Bank, said Berlin remains committed to a negotiated resolution but acknowledged that the process must begin now.

“For Germany, the recognition of a Palestinian state is rather the end of the process. But such a process must begin now,” Wadephul said Thursday. He emphasized that Germany is increasingly concerned the Israeli government’s annexation plans could extinguish prospects for a two-state outcome.

Germany, one of Israel’s closest allies, now faces mounting pressure as fellow European countries toughen their stance. French President Emmanuel Macron and UK Prime Minister Keir Starmer have both expressed openness to recognizing Palestine. Sweden, Spain, and Ireland have called for the suspension of the EU-Israel association agreement over the Gaza crisis.

The European Union, Israel’s largest trading partner with $47 billion in goods exchanged in 2024, is debating potential economic consequences, including suspending trade preferences.

Chancellor Friedrich Merz convened Germany’s security cabinet earlier this week and demanded Israel immediately alleviate the “catastrophic” humanitarian crisis in Gaza. Though he stopped short of outlining punitive measures, he confirmed further steps were under review.

Wadephul’s trip, including meetings with Israeli Foreign Minister Gideon Saar and Palestinian Authority officials in Ramallah, will play a pivotal role in determining Germany’s next moves. A potential meeting with Israeli Prime Minister Benjamin Netanyahu is also on the agenda, according to German officials.

“Germany is convinced that a negotiated two-state solution remains the only sustainable solution to the conflict,” Wadephul reaffirmed.

The possibility of Germany supporting EU sanctions or curbing weapons deliveries to Israel is also under consideration, pending the outcomes of Wadephul’s visit and continued Israeli actions on the ground.