Diplomats urge EU to block Jerusalem settlements

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The EU report singled out Israeli policies in east Jerusalem, particularly several major settlement projects being planned there.

Israeli Prime Minister Benjamin Netanyahu has often come out against dividing Jerusalem. Israel annexed the eastern sector, sought by the Palestinians as a capital, weeks after capturing it in the 1967 Mideast war, a move not recognized internationally. Beyond its greatly expanded borders of Jerusalem, Israel has not annexed West Bank territory.

The EU report said Israel approved an unprecedented number of settlement plans in and near east Jerusalem in response to the Palestinians' successful bid in November to win U.N. recognition for a state of Palestine in the occupied lands.

If the current pace of settlement building on Jerusalem's southeastern flank continues, "an effective buffer between east Jerusalem and Bethlehem (in the West Bank) may be in place by the end of 2013, thus making the realization of a viable two-state solution inordinately more difficult, if not impossible," it said.

The consuls recommended that the EU intensify efforts to "counter settlement activity" in and near east Jerusalem and make sure EU aid programs don't inadvertently benefit settlements. They also proposed developing voluntary guidelines for EU tour operators to prevent support for settlement businesses in east Jerusalem.

It remains unclear what impact the report will have. The recommendations have not been endorsed by the EU, and the European bloc in any case plays only a supportive role in U.S.-led international efforts to broker an Israeli-Palestinian deal.

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Associated Press writer Mohammed Daraghmeh contributed.

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