France’s role in the Israel–Palestine conflict is complex but fair. It has a good effect on the building of a sovereign Palestinian state, the right to the existence of Israel, and peaceful living. France is among the countries that recognize that Israel does have the right to live in peace with others who hold good memories of the country, which also enjoys good cultural relationships with Israel, which was one of the first countries to recognize Israel in 1949.
France has a good relationship with Israel and it has the most Jews compared to any other country in Europe.
France favors the establishment of an independent Palestinian state that co-exists with Israel and has the division of Jerusalem as its capital. France has slowly but steadily developed the status of a Palestinian representation in France, recognizing the Palestine Liberation Organization (PLO) as an observer in the UN since 1974. France is against Israeli settlement expansion in the occupied territories and insists on the respect of Palestinian rights.
France’s position on the Israel-Palestine conflict as of 2025
The French government is taking a concerted approach towards reviving the two-state solution to the center stage of the world stage. However, France’s president, Emmanuel Macron, said at a special meeting on Palestine that was held by France and Saudi Arabia at the UN in March 2025 that the French state would formally recognize the state of Palestine in June 2025.
That is why this conference is being held because it is encouraging the Arabs and Muslims to normalize relations with Israel and mutually see the existence of Israel and Palestine. Macron reaffirmed that this action is part of a bigger movement to ensure that Israel has the right to exist in security and that the Palestinians get to see their state. France, therefore, wants to lead by example in bringing other G7 countries to follow suit, given that 148 UN members now recognize Palestine, while none recognize it from the G7 group.
Condemnation of France on Israeli military actions and humanitarian concerns in Gaza
France called for an immediate ceasefire and resumption of humanitarian aid access to Gaza after slamming Israeli airstrikes in the territory in March 2025 that left many civilians dead. France stressed the immediate necessity of water, energy, and medical supplies and asked Israel, along with the UK and Germany, to allow people to bring humanitarian assistance to Gaza and protect the people. In addition, France insisted on the liberation of the captives held in Gaza without any terms.
France has strongly criticized any forcible movement of Palestinians from Gaza and the West Bank, as most of the nations perceive these actions as heavy violations of international law and large obstacles to peace. France was keen to remind that the fate of Gaza should be in the Palestinian state context under the Palestinian government, with Hamas disarmed and excluded from governing, and reiterated its opposition to Israeli settlements and any unilateral annexation of Palestinian lands.
According to critics, France must do more to uphold human rights and international law, even though the anticipated recognition of Palestinian statehood is a good diplomatic decision. This means that France will need to deal with French individuals and businesses operating in occupied areas, pressuring Israel to end the occupation and its expansion, and the alignment of EU policies with human rights promises. France is left with the choice between being meaningfully in the lead in the peace process and making symbolic moves.
Potential impacts of France’s recognition of Palestine
Being the 12th country in the European Union to formally recognize Palestine, a formal recognition by France would mean a major shift in Western policy. Such a step could be another diplomatic pressure to exert additional pressure on the international community and Israel to promote the two-state solution. By recognizing Palestine, France expects to break the stalemate deadlock of the peace talks and signal that unilateral recognition is necessary to move the peace process forward in the wake of stalled negotiations.
To advance mutual recognition between Israel and Palestine, which he feels is important in making the region peaceful and secure, Macron has clarified that recognition is part of a bigger project. Such an acceptance bothers Israeli officials since this can increase instability by emboldening groups such as Hamas.
Israel and the allies, therefore, may diplomatically oppose France, possibly making bilateral and regional relations more challenging. Internal political factors related to France, like the presence of a large Muslim population in the country and anti-Israeli sentiment in the country, affect the state’s recognition. Detractors argue that, unlike serving as a distinct policy shift, recognition threatens to become a gesture of tokenism to appease domestic constituencies.
International law and resolutions of the UN would correspond to France’s recognition if it agreed to the 1967 borders of Palestine and its eastern part, East Jerusalem, as its capital. It could escalate international condemnation of Israeli occupation policies and settlement growth by strengthening the moral and legal stands for the Palestinians’ rights and sovereignty. This could lead to more requests for accountability and humanitarian considerations as far as the conflict is concerned.
Macron has linked recognition to a campaign against radical ideology, such as militancy sponsored by Iran that denies the legitimacy of Israel. Thus, the actions of France may be a part of the bigger scheme of things aimed at creating a regional understanding through mutual recognition between Israel and Arab countries and, thus, enhancing the efforts for normalization and minimizing the factors that lead to violence in the Middle East.
What are the potential economic impacts on France and Israel due to this recognition?
From a trade, investment, financial, and geopolitical standpoint, the possible economic effects on France and Israel of France’s 2025 recognition of Palestine might be examined:
1. Commerce with Israel
With France exporting over €425 million worth of goods to Israel and purchasing approximately €311 million from Israel in late 2024, the two countries have a strong bilateral trade relationship that benefits France’s trade balance. If Israel responds badly, recognition of Palestine might lead to diplomatic tensions that could potentially temper these economic relations and impact trade volumes, particularly in delicate industries like services, technology, and the automobile sector.
2. Pressures from the financial sector and ethical investment
Imperative financial operations and financing done by French banks and financial bodies are linked to Israeli entities, particularly Israeli businesses that carry out their business in the settlements in the occupied Palestinian territory. As the French state recognizes the existence of Palestine, French financial institutions might experience additional pressure from both local and foreign pressure groups to divest from businesses that are linked to settlements. This might lead to financial changes or caps that impact investment portfolios and returns.
3. Assistance and business collaboration with Palestine
From 2008 to 2017, France contributed over 500 million euros to the Palestinian territories and still allocates substantial amounts for the development of infrastructure, the building of institutions, and the economy each year. Increasing aid and cooperation can improve its role in the Palestinian economy, and France realizes geopolitical benefits as a local player.
4. Economic risks and Geopolitical stability
The recognition can affect France’s contribution to regional stability and its wider policies in the Middle East. The French economy will have a courtesy effect if a conflict between Israel and the Palestinians or a conflict involving Israel and its neighbor gets worse. This may impact investor confidence as well as global energy markets, such as the price of oil. On the other hand, a successful diplomatic effort would improve stability, which would help investment and trade.
End up
In 2025, France plans to co-chair a significant UN summit to advance the two-state solution and advance a diplomatic push to formally recognize Palestine. It opposes forced relocation and settlement growth, denounces Israeli military acts that injure civilians, and demands humanitarian access. Nonetheless, France is under pressure to turn recognition into practical steps that respect international law and advance a fair and sustainable peace in the area.
