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July 17, 2013

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EU announces ban on cash to Israeli groups in West Bank

THE European Union said yesterday it will bar financial assistance to Israeli organizations operating in the occupied territories, underlining its concern that Israeli settlement-building harms prospects for peace with the Palestinians.

Guidelines adopted by the EU's executive Commission in late June and expected to be published this week make clear that, from next year, Israeli "entities" operating in the territories will not be eligible for EU grants, prizes or loans.

The measure will apply to Israeli companies, universities or other bodies operating in areas occupied by Israel since the 1967 Middle East War, including the Golan Heights, the West Bank and East Jerusalem.

"The EU has made it clear that it will not recognize any changes to pre-1967 borders, other than those agreed by the parties to the Middle East Peace Process," the guidelines said.

The decision could make it politically difficult for the Jewish state's pro-settlement government, which has called those narrow boundaries indefensible, to sign accords with the 28-nation EU.

Palestinians praised the rule as a concrete step against settlement construction they fear will deny them a viable state. Israeli cabinet ministers condemned the move.

Sandra de Waele, EU delegation to Israel's head of political affairs, said on Israel Radio the guidelines codified EU policy that "agreements and financial instruments that benefit Israel" should not apply to activities or entities in territory it captured in the 1967 war.

The EU decision was an expression of "frustration with continued settlement expansion," she added.

The EU move came to light as US Secretary of State John Kerry, who is attempting to revive Israeli-Palestinian peace talks, embarked on his sixth visit to the Middle East since taking office in February.

The EU, which has been pressing for direct talks to resolve the Israeli-Palestinian conflict, has taken a strong stance against Israeli plans to expand settlements in the West Bank, saying it would undermine prospects for a negotiated solution.

Some 500,000 Israelis have settled in the West Bank and East Jerusalem among about 2.5 million Palestinians. Palestinians seek a state in the West Bank and Gaza Strip, with East Jerusalem as its capital.

Israel signalled concern that Palestinians would feel emboldened to stick to demand that settlement construction be frozen before any resumption of peace talks that collapsed over the issue in 2010.

"I think Europe is proving again just how detached it is and how it cannot truly be a full partner in (Israeli-Palestinian) negotiations," Israeli Energy Minister Silvan Shalom told Army Radio.

Zeev Elkin, Israel's deputy foreign minister, said the EU's "very worrisome step" came at a bad time.

Hanan Ashrawi, a senior member of the Palestine Liberation Organization, said the EU had moved beyond "statements, declarations and denunciations" over Israel's settlement policy and made a "qualitative shift" that would improve peace prospects.





 

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