July 16, 2013 - 17:08 AMT
PanARMENIAN.Net - Israel has condemned new European Union guidelines banning EU funding of projects in territories occupied by Israel since the 1967 Middle East war, BBC News reported.
From 2014, such agreements with Israel will exclude East Jerusalem, the West Bank, Gaza Strip and the Golan Heights.
Israeli minister Silvan Shalom said the measure was a "big mistake" which cast doubt on the EU's impartiality in the Israel-Palestinian conflict.
Palestinian official Hanan Ashrawi welcomed it as a "significant move".
Under the guidelines, which come into effect on Friday, Israeli projects applying for EU funding will be required to sign a clause to state that it will not apply to the occupied territories.
Palestinians want to establish a state in the West Bank and Gaza, with a capital in East Jerusalem.
About 500,000 Jews live in more than 100 settlements built in the West Bank and East Jerusalem. The settlements are considered illegal under international law, though Israel disputes this.
Peace talks stalled in 2010 over the issue of Israeli settlements. Palestinians are demanding a freeze on building in settlements as a pre-condition to return to talks, while Israel says talks should resume unconditionally.
Source: http://www.panarmenian.net/eng/news/165791/
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