New EU proposal expands to Israeli banks, loans and tax-exemption statutes

New proposal goes beyond EU labeling of Israeli products from banks in what is being referred to as possible sanctions to be placed on Israel- specifically economic and bank related

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The European Union is continuing in labeling Israeli goods from the West Bank in the European market. According to the European Council on Foreign Affairs, not doing so would be a violation of EU laws.

The Council published its proposal, referred to as the “EU Differentiation and Israeli Settlements” on Wednesday, the proposal claiming that labeling of Israeli goods from “the occupied territories” would relieve Europe of any legal violations.

The proposal however has been updated and poses a much larger threat to Israel as more than just Israeli goods but could also include in the near future banks, including loans, mortgages and tax-exemption statuses, the report stating, “Under its own regulations and principles, Europe cannot legally escape from its duty to differentiate between Israel and its activities in the Palestinian territories.”

Reuters has reported the proposal as the beginnings of possible “sanctions” on Israel. The proposal would affect European Union dealings with Israeli banks and businesses.

Israel’s Foreign Ministry responded to the development on Wednesday stating, “This report was made by a European research institute and not the EU. We do not comment on research institute papers.”

The reports come just a few hours before Israel’s subcommittee of Israeli Civil Administration is likely to end a settlement freeze with an expected 296 homes to be built close to Beit El. The committee will address several cases of settlement growth approval, including 112 in Ma’aleh Adumim, 381 in Givat Ze’ev and 27 in southwest Samaria according to Israeli media.