EU Heads of Mission recently presented two landmark reports, including policy recommendations, on the situation in the occupied Palestinian Territory: a report on “Area C and Palestinian State Building” in July 2011 and the latest Jerusalem Report in January 2012. These documents, both leaked to the press, reveal again alarming developments in the areas concerned. In Area C, where Israeli settlers (310,000) largely exceed in number Palestinians (150,000), the Palestinian presence continues being undermined through the expansion of settlements (the municipal area of settlements covers 9.3% while settlement infrastructure altogether dominates more than 40% of West Bank territory), administrative measures and the planning regime imposed by the occupying power (in practice, Palestinian construction is only allowed within less than 1% of Area C, most of which is already built up), and other severe restrictions. In East Jerusalem, where 196,000 Israelis are living in settlements inside the city, house demolitions, eviction of Palestinians, residency status-related administrative restrictions, the separation wall and the permit regime, inequities in the education and the health system have considerable negative impact on the daily life of Palestinian residents. The prolonged closure of numerous Palestinian institutions also remains a key concern. All these destroy the prospect of a two-state solution – with two states living side by side in peace and security on the basis of the 1967 borders with Jerusalem as capital of both states – which is a cornerstone of EU policy towards the conflict. Moreover, the destruction by Israel of infrastructure projects in the area, several funded by the EU and its Member States, further undermine and hinder European efforts in this field. We would like, therefore, to clarify the following issues:







