Article content

The European Union has set itself on a collision course with Israel after drawing up a list of sanctions to be imposed if the country takes steps that would make the establishment of a Palestinian state impossible.

In what amounts to Europe’s toughest line yet with the Israeli government, punishments such as trade restrictions could be imposed if continued settlement-building on occupied land is deemed to be at odds with reaching a two-state solution — defined as an independent Palestine alongside Israel.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or EU sets itself on collision course with Israel by threatening 'sanctions' over West Bank settlements Back to video

A catalogue of measures has been set out in a secret document prepared by the European External Action Service and distributed to the EU’s 28 member states. While diplomats are shying away from characterizing the measures as “sanctions,” the paper — the contents of which are said to be at the early discussion stage — advocates a “carrot and stick” approach to relations with Israel.

There is concern about settlement activity that would have a serious impact on a two-state solution

Officials say the move towards punitive action has been driven by European concern over continued Israeli settlement building in the occupied West Bank and east Jerusalem, on territory claimed by the Palestinians for a future state, despite the government’s supposed commitment to a two-state solution.