European Union officials based in East Jerusalem and Ramallah have recommended that the EU limit trade with settlements and block investment in them.

In a report sent to all 27 member states and seen by Haaretz, the EU consul recommended that states should: “Prevent, discourage and raise awareness about problematic implications of financial transactions, including foreign direct investments, from within the EU in support of settlement activities, infrastructure and services.”

This is stronger language than has previously been used to express the EU’s opposition to settlements.

The report urged Brussels to strictly enforce the EU-Israel free trade agreement, which ensures that goods from the settlements do not receive the preferential treatment that goods from within the Green Line do. It also recommended that the EU cease investment in any research done by Israeli organisations based in settlements.