Sanctions are a very broad term because they can range from simply refusing to have relationships with Israel at all at European level or indeed cutting off trade links to relatively milder steps, such as calling into question the trade agreement we have which gives Israel duty free access to the European markets. This would be a huge blow to them, although it wouldn't prevent them from exporting to the Europe market. They would not have the financial advantages of selling their goods on the EU market free of duty.
Until now the EU has been reluctant to even hint that such a thing would be possible. I think, given the situation at the moment, it is necessary for the European Union to go beyond statements saying the siege of Gaza is unacceptable and that the settlements are illegal. They need to make it clear to Israel that if they continue beyond a certain point that Europe will have to take some action to indicate its dissatisfaction. That obviously could come under the heading of sanctions.
