Lars Faaborg-Andersen told Israel's channel 2 TV today that such a scenario wouldn't necessarily be a result of European policy, but rather the actions of private companies.
His comments echo those made by US Secretary of State John Kerry, who is brokering the talks and who warned last week that the boycott would expand if talks fail.
The warnings caused uproar in Israel, with some officials condemning the remarks while others recommended the government take note.