On Sunday, 3 November, Israel announced that it is planning the construction of 1,859 additional units on its occupied land in Palestine.  EU High Representative Catherine Ashton issued a response to Israel’s declaration, underscoring that the European Union remains steadfast in its opposition of these illegal settlements.  The Israeli settlements in the West Bank and East Jerusalem are built upon land that was occupied by Israel during the Sixty-Day War in 1967.  However, the international community, most notably the United Nations, does not recognize the legality of these Jewish communities, for they violate the Geneva Convention’s regulations forbidding construction on occupied territory.  Israel’s recent announcement regarding further development not only interrupts the Palestinian-Israeli peace talks, but it also impairs EU-Israel relations.   

The expansion of the European Union that occurred in 2004 shortened the distance between the EU and Israel, both geographically and economically.  Therefore, an Action Plan was established to focus greater energy on strengthening the Union’s ties with Israel, a nation that likewise values democracy, human rights, and the rule of law.  Currently, Israel relies on the EU as its largest trading partner, for the Union provides the country with 35 percent of its imports and receives 25 percent of its exports. 

However, the ongoing Israeli-Palestinian conflict has been a point of contention between Israel and the EU, for the Lisbon Treaty necessitates the Union to defend international laws.  In 2009, strict rules were established to regulate the allocation of EU funds to Israeli organizations, banning assistance to those who operate in the illegal Israeli settlements.  By lending aid to such entities, the EU would be legitimizing unlawful acts; thus, agreements with Israel clearly outline that the settlements are not recognized by the EU as a part of Israel and are, therefore, not included in EU-Israeli deals. 

Tension between the EU and Israel has further mounted as a result of the EU’s new research and development program, Horizon 2020.  Under this program, the EU will invest just over 70 billion euros on scientific research and innovation in order to spur growth and job creation among member states, closing the gap between research and the market.  Israel is the sole non-member state invited to take part in this program, which is set to begin 1 January 2014.  In order to participate, Israel would be expected to contribute 600 million euros to the program, resulting in investments and opportunities for the nation’s most skilled researchers that would be well worth the price.

However, in accordance with the EU’s policy regarding Israel’s illegal settlements, Israeli research institutes in the West Bank and East Jerusalem would be excluded from the funding.  Israel’s Deputy Foreign Minister Ze’ev Elkin argues that these terms are unacceptable, for “it would force us to discriminate against our own institutions.”  Furthermore, the exclusion of Israeli institutes in these Palestinian regions would lead to a loss of approximately 150 million euros, a cost that Israel does not want to incur.  Although statements made by Israeli officials suggest that they are unwilling to agree to any deal that would not enable the participation of these institutes, an agreement must be reached by the end of this year in order to be included in the program from its outset. 

Further negotiations between representatives from Brussels and Israel will occur at the end of this month to try to reconcile the differences between the two parties.  Little progress has been made in prior meetings regarding this issue, causing many to predict that a deal will not be struck before the program begins in January.  Although the door will be open to allow Israel to join the program in the future, a lack of agreement will further strain the ties between the EU and Israel.  While not wanting to cause irreparable damage to its relations with Israel, the EU is hopeful that the pressure it is applying to Israel will eventually result in peace with Palestine.