Faced with a formal request from the Palestinian Authority and citing growing frustration with the Israeli settlement expansions, the European Union is warning today that it is on the verge of recognizing an independent Palestine along the 1967 borders.

The move would follow high profile recognitions by Brazil and Argentina last week, though the warning was watered down significantly, reportedly after Israeli demands that Britain move against the proposal as it was initially written.

A number of European officials have expressed annoyance at the collapse of the direct peace talks, with a collection of former top officials even suggesting the EU should adopt sanctions against Israel over the settlement expansions.

Israeli officials reacted with outraged both to the notion of sanctions and the notion of an independent Palestine, saying that they proved the European Union was inherently biased against Israel and that the collection of nation-states had “lost all credibility.”