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Illustrative image of the European Union and Israeli flags (Maksym Kapliuk; iStock by Getty Images) The economic collaboration between Israel and the European Union has not come close to fulfilling its potential, particularly with regard to the tech sector, according to a first-of-its-kind report by the EU. The authors of the report said European conglomerates are lagging behind their US and Chinese competitors with regard to both merger and acquisition deals and corporate investments in Israel, while VC engagement in the Israeli tech sector is low too. Small and medium-sized European companies, which make up approximately 99.8% of all non-financial business in Europe and generate more than 50% of the EU’s gross domestic product (GDP), “are almost entirely absent” from the Israeli market, as they face “significant barriers” to being able to engage with the nation.

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