ByAnshel Pfeffer, Anshel Pfeffer
The Israeli government is concerned that the European Union will try to convince its member to implement sanctions on Israel over building projects in the West Bank.
Possible sanctions appear in a document prepared by the Middle East department of the EU's foreign service, which was revealed in Israeli newspaper Haaretz.
New measures include changes to the free-trade agreement with Israel, action against European companies working in the settlements and even the possibility of recalling EU ambassadors from Israel.
Also included are measures that have been discussed previously, such labelling produce from the settlements and limiting the research and development co-operation with Israel which is funded by a multi-million EU budget.
The document also details ways in which the EU could upgrade the status of the Palestinian Authority to a state and supporting its membership of international organisations.
The planned sanctions reflect a growing frustration in some European capitals over the recent announcements of the Israeli government that it would continue building new projects across the Green Line in East Jerusalem.
The existence of the document has been known for a few weeks now by Israeli diplomats.
It is unclear whether the new EU foreign policy chief, Federica Mogherini, who visited Israel two weeks ago, is preparing to endorse the document which was written under her predecessor Catherine Ashton.
It is also far from certain that Brussels would be capable of convincing European governments to go ahead with the sanctions should Ms Mogherini decide to do so.
In a joint press conference in Jerusalem with Germany's foreign minister, Frank-Walter Steinmeier, Foreign Minister Avigdor Lieberman insisted that "there is no room to create a linkage between the bilateral relations between Israel and the European Union and the situation of the relations between Israel and the Palestinians."