The basis of the EU decision stems from the parts of the district having been constructed before Israel officially took the area in the 1967 war.
The Foreign Ministry challenged the move and said that the EU “ignores reality when it extends the domain of conflict to places and issues that do not belong there.
“The EU unacceptably cut off a negotiating process regarding this very issue".
However, the EU’s mission in Israel challenged the Foreign Ministry comments as only three postcodes in the area are included on the list.
Yuli Edelstein, Israel’s Minister of Diaspora Affairs, said: “We will submit a complaint with the European authorities about this unjust and mistaken decision, which is like a boycott measure.”
