Photo Credit: Issam Rimawi/FLASH90
EU foreign policy chief Catherine Ashton and Palestinian Prime Minister Salam Fayyad with Palestinian farmers in the Judea and Samaria village of Ras Karkar near Ramallah, October 25, 2012.

An EU report calls for member states to prevent support for the settlement enterprise.

An internal report issued by the EU recommends that member states completely prevent financial transactions that support settlement activity in Judea and Samaria. The report, entitled “Jerusalem 2012,” was compiled by the heads of European Union missions to Jerusalem and Ramallah.

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According to the report, Israel’s construction in the southern neighborhoods of Jerusalem is the greatest threat to the two-state solution and defines it as “systematic, deliberate and provocative.”

The report notes three neighborhoods specifically: Har Homa, Gilo and Givat Hamatos, warning that if construction there continues at the present rate, it may create by the end of this year a buffer zone between East Jerusalem and Bethlehem. The report argues that such a buffer, when completed, would make it difficult to implement the two-state solution, and might mean its demise altogether.

Israel’s relations with the 27-member EU have been extremely tense in recent months, as the European organization has been voicing its discontent over a long list of Israeli construction programs involving construction of at least 5,000 new homes in and around East Jerusalem.

The EU is Israel’s largest import and export market, and should it implement punitive trade sanctions it would affect the already stumbling economy of the Jewish State.

According to the report, tenders were issued for 2,366 new units in 2012, which was “more than twice” the total number issued over the preceding three years—only 1,145, the report said.

Most of them were for construction in Har Homa, “significantly expanding the existing footprint of the settlement’s built-up area.”

Israel liberated East Jerusalem during the 1967 Six Day War and later annexed it, a move which is yet to be recognized by the international community. In fact, most Western countries, including most notably the U.S., don’t even fully recognize West Jerusalem, within the 1949 armistice “green line,” as Israel’s capital—preferring to keep their embassies in Tel Aviv.

Israel officially considers all of Jerusalem its “eternal, undivided” capital and rejects the view that construction in the eastern sector as settlement building.

But since the Palestinians want East Jerusalem to become the capital of their state, they— along with many in the international community—consider settlement construction in East Jerusalem and Judea and Samaria to be equally illegal.

This is born by an erroneous reading of the Geneva Convention Rule 130: “States may not deport or transfer parts of their own civilian population into a territory they occupy.” Technically speaking, the area formerly known as “West Bank” was never recognized widely as belonging to the state of Jordan, whose army occupied it in 1948. Since the area remained as a no man’s land until 1967, Israel’s taking of it did not constitute an occupation.

U.S. official policy refers to the area, as well as to Gaza, as “disputed territories.”

“If the implementation of the current Israeli policy regarding the city continues, particularly settlement activity, the prospect of Jerusalem as a future capital of two states — Israel and Palestine — becomes practically unworkable,” the EU report’s executive summary said. “This threatens to make the two-state solution impossible.”

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Yori Yanover has been a working journalist since age 17, before he enlisted and worked for Ba'Machane Nachal. Since then he has worked for Israel Shelanu, the US supplement of Yedioth, JCN18.com, USAJewish.com, Lubavitch News Service, Arutz 7 (as DJ on the high seas), and the Grand Street News. He has published Dancing and Crying, a colorful and intimate portrait of the last two years in the life of the late Lubavitch Rebbe, (in Hebrew), and two fun books in English: The Cabalist's Daughter: A Novel of Practical Messianic Redemption, and How Would God REALLY Vote.