Skip To Content
JEWISH. INDEPENDENT. NONPROFIT.
Breaking News

Israel Blocks E.U. Aid to Palestinians in Retaliation for Settlement Boycott

Israel has blocked the European Union from aiding tens of thousands of Palestinians in the West Bank in retaliation for Brussels’ ban on financial assistance to Israeli organizations in the occupied territories.

An Israeli official said on Friday the move was a result of the EU decision “to sanction or boycott the settlements”.

“From our standpoint we cannot just ignore this or treat spitting in our face as though it is rain,” the official said.

The EU imposed restrictions last week citing its frustration over the continued expansion of Jewish settlements in territory captured by Israeli forces in the 1967 Middle East War.

The guidelines render Israeli entities operating there ineligible for EU grants, prizes or loans, beginning next year.

Settler leaders say the aid they receive from Europe is minimal. But many in Israel worry about possible knock-on effects the EU steps may have on individuals or companies based in Israel that might be involved in business in the settlements, deemed illegal by the international community.

The Israeli official, speaking on condition of anonymity, said Defence Minister Moshe Yaalon had decided to suspend contacts with the EU in the West Bank.

Yaalon, a former army chief and hardliner in Prime Minister Benjamin Netanyahu’s Likud party, has “frozen projects, cancelled meetings, curtailed coordination and permits for Europe’s operations” for Palestinians living in what is known as Area C, a West Bank area fully administered by Israel, he said.

The EU expressed concern about the Israeli steps, which may hurt its humanitarian work for Palestinians, an EU source in Israel told Reuters.

The organisation had not been formally notified of the Israeli measures and was seeking clarification, he said.

A Western diplomat, speaking on condition of anonymity, said several European humanitarian aid staff had had difficulty obtaining permits and some requests had gone unanswered.

Under the terms of a 1993 interim peace accord, some 150,000 Palestinians, many of then poor farmers and shepherds living in Area C, a West Bank zone where many settlements have been built, are fully under Israeli military control,

The Palestinians have limited self-rule over other parts of the West Bank, and share joint custody with Israel over yet other areas.

Some of Europe’s assistance in the West Bank goes to Palestinians whose homes built with EU funding are demolished by Israel, often maintaining the structures were built illegally.

The Association of International Development Agencies, a coalition of 80 aid groups, said in a report in May that 600 settler houses had been built since mid-2012 while Israel demolished 535 Palestinian-owned homes and structures.

The United States, Israel’s main backer, has been trying to revive peace talks that have been deadlocked for three years and aimed at reaching an agreement for the Palestinians to establish a state alongside Israel.

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning journalism this Passover.

In this age of misinformation, our work is needed like never before. We report on the news that matters most to American Jews, driven by truth, not ideology.

At a time when newsrooms are closing or cutting back, the Forward has removed its paywall. That means for the first time in our 126-year history, Forward journalism is free to everyone, everywhere. With an ongoing war, rising antisemitism, and a flood of disinformation that may affect the upcoming election, we believe that free and open access to Jewish journalism is imperative.

Readers like you make it all possible. Right now, we’re in the middle of our Passover Pledge Drive and we still need 300 people to step up and make a gift to sustain our trustworthy, independent journalism.

Make a gift of any size and become a Forward member today. You’ll support our mission to tell the American Jewish story fully and fairly. 

— Rachel Fishman Feddersen, Publisher and CEO

Join our mission to tell the Jewish story fully and fairly.

Only 300 more gifts needed by April 30

Republish This Story

Please read before republishing

We’re happy to make this story available to republish for free, unless it originated with JTA, Haaretz or another publication (as indicated on the article) and as long as you follow our guidelines. You must credit the Forward, retain our pixel and preserve our canonical link in Google search.  See our full guidelines for more information, and this guide for detail about canonical URLs.

To republish, copy the HTML by clicking on the yellow button to the right; it includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to the Forward. It does not include images; to avoid copyright violations, you must add them manually, following our guidelines. Please email us at [email protected], subject line “republish,” with any questions or to let us know what stories you’re picking up.

We don't support Internet Explorer

Please use Chrome, Safari, Firefox, or Edge to view this site.