A harsh report by European Union consuls in the Palestinian territories recommends the Union level economic sanctions against Israeli settlements in the West Bank, the Ha'aretz daily reported Wednesday.
The Israeli newspaper said it had obtained a copy of the non-binding report, one recommendation which is to "prevent, discourage and raise awareness about problematic implications of financial transactions, including foreign direct investments, from the EU in support of settlement activities, infrastructure and services."
Of the report's 10 recommendations, seven deal with imposing direct or indirect sanctions on bodies and organizations involved in construction in the settlements.
Diplomats representing EU member states told The Times of Israel daily that, while the report's language appeared strong and suggested a call for active EU divestment from the settlements, it signified no actual change in the union's policy.
In Brussels, a spokesman for High Representative and Vice President Catherine Ashton had no comment on the contents of the report, but regretted it had been leaked.
"The report is intended to serve as a source of information for the EU and as an input to its policy-making process. As such, it should assist the EU in determining how best to achieve the objective of a two-state solution to the Middle East peace process," the spokesman said.
The international community does not accept Israeli settlements in the West Bank and has never recognized Israel's annexation of East Jerusalem, which Palestinians want as the capital of their future state.
Although Israel is building no new settlements in the West Bank, the existing settlements are seen as hindering the chances of a two-state solution to the Israeli-Palestinian conflict. Also, existing settlements are being expanded, to Palestinian objection.
An Israeli freeze on construction in East Jerusalem and West Bank settlements is one of the Palestinian conditions for returning to the negotiating table.