The Israeli government will accept the new European Union guidelines on funding projects only within the “Green Line” as part of a new research agreement with the EU.

The guidelines, which will come into effect in 2014, were published four months ago, causing a political storm in Israel. In the balance hung the Horizon 2020 programme which is expected to provide 300m euros in research funding to participating countries.

Israel now accepts the EU guidelines as part of the Horizon 2020 agreement. It has not agreed, however, to the singling out of individuals who work the West Bank.

It has also requested the addition of a clause saying that it does not accept the pre-1967 lines as future borders.