"In Luxemburg the European court removed Hamas from the list of terrorist organisations, Hamas that has committed countless war crimes and countless terror acts," Netanyahu was quoted as saying by his office.
"It seems that too many in Europe, on whose soil six million Jews were slaughtered, have learned nothing."
"But we in Israel, we've learned. We'll continue to defend our people and our state against the forces of terror and tyranny and hypocrisy," he said at the start of a meeting with US Republican Senator-elect Joni Ernst.
But it stressed the decision to remove Hamas was based on technical grounds and does "not imply any substantive assessment of the question of the classification of Hamas as a terrorist group".
Founded in 1987 shortly after the start of the first Palestinian intifada, or uprising, Hamas was inspired by Egypt's Muslim Brotherhood.
Its charter calls for the eventual destruction of Israel and the establishment of an Islamic state on the pre-1948 borders of British-mandated Palestine.
Together with the court decision, he said, they gave an impression of weakness in the face of militant groups which was liable to boomerang.
"They point to a spirit of appeasement in Europe of the very forces that threaten Europe itself," he said at an annual reception for foreign journalists.
Switzerland gathered diplomats from 126 of the 196 signatories of the Geneva Conventions to discuss protections for civilians, fulfilling a five-year-old request for such a conference from the UN General Assembly.
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