At the beginning of the quarter, the EU finally concluded (11/26) an agreement to allow Israel’s participation in the Horizon 2020 scientific research project. Following lengthy talks between Livni and Ashton, a compromise was reached with the publication of an appendix confirming that the EU’s funding guidelines approved in 7/2013 rendered entities based in West Bank settlements ineligible, and an accompanying Israeli appendix stating the Israeli govt.’s opposition to those guidelines. Although the move was considered by many in Israel to be indicative of a growing chill in relations with the EU, it actually pointed to Brussels’s desire to increase cooperation with Israel, which required a solution to the legalities surrounding settlements and settlement trade. A res. passed by EU FMs 10 days later (12/7) seemed to confirm this view as it offered Israel and the Palestinians “Special Privileged Partnership” status if the 2 sides could reach a final status agreement. This incentive to reach a peace deal, including a significant amount of economic, political, and security-related aid, was designed to boost Kerry’s diplomatic initiative, as well as show the EU’s commitment to a permanent agreement between the 2 sides.
Nevertheless, there was continued disquiet among EU officials over Israeli policies, especially settlement construction as expressed by Ashton who spoke about her “deep concern” following Israeli announcements of new settlement homes (e.g., 11/1 and 2/6).
Meanwhile, there were anonymous briefings and reports of further EU measures targeting settlement trade in the event of the talks collapsing or Israeli settlement construction continuing unabated. An unnamed official briefed the Israeli media on 12/4 about significant support amongst EU mbr. states (estimated 14 of 28) for the labelling of settlement goods. Another rumored step ready to be rolled out by the EU Commission concerned guidelines for businesses about the risks of trading with settlement-based entities. In light of these reports, as well as measures being initiated by European investment bodies (see BDS section below), the president of the EU parliament, Martin Schulz, on a visit to Israel felt the need to emphasize (2/12) the EU’s opposition to boycotts.
The EU also maintained its key role within the Quartet as Ashton chaired a meeting (2/1) of senior officials from the group on the sidelines of the Munich Security Conference that took place 1/31-2/2/2014.