The European Union has threatened to impose economic sanctions on the Israeli government and make sure that goods produced on illegal settlements will be clearly labelled as such. The moves are in response to the Israeli government's plans to build new settlements in the occupied Palestinian territories.
According to Hebrew newspaper Maariv, the EU is to submit a draft law covering settlement goods to the Council of EU foreign ministers for full or partial approval and adoption. Maariv reports that the text reads thus: "The European Union condemns Israel's announcement about its intention to expand settlements in the West Bank, including its intention to construct settlements in the area between Jerusalem and Maale Adumim known as E1, as it believes that this step harms Israeli-Palestinian relations, the two-state solution and the end of the conflict, as well as being an obstacle to the establishment of a Palestinian state."
In the same context, the European Union criticised the Israeli threats to stop transferring the tax revenues owed to the Palestinian Authority. It has also urged the Palestinians to "act responsibly" after obtaining non-member state observer status of the United Nations and not pursue Israeli officials at the International Court of Justice.