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According to one report, one country's foreign office told a company involved in trade beyond the Green Line that its actions are in violation of local law and international law which stipulates that settlements are illegal. The company is now considering dropping out of the project but is also under pressure from Israel to stay on board.
Sources at the Foreign Ministry said that other EU countries, as well as the EU Commission, are considering issuing warnings advising businessmen to avoid financial activity in Israeli territories beyond the 1967 borders. However, they stressed that these warnings bear no legal significance and are purely political.
Israel is currently engaged in negotiations with the EU for the Horizon 2020 project. The EU is pushing for the inclusion of a clause forcing Israel to agree to exclude territories beyond the Green Line from the project.
Israel has said it will not sign such a clause but this would entail the loss of hundreds of millions of euros in research funds. State officials said Israel will eventfully comply as long as the EU softens its language.
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