The Presidency of the European Union is dismayed by the recent decision on the expansion of the settlement of Gilo.

 The Presidency recalls that settlement activities, house demolitions and evictions in East Jerusalem are illegal under international law. Such activities also prejudge the outcome of final status negotiations and threaten the viability of a two-state solution. The Presidency recalls that the European Union has never recognised the annexation of East Jerusalem in 1967 nor the subsequent 1980 basic law.

The actions taken by the Israeli Government contravene repeated calls by the international community, including the Quartet, and run counter to the creation of an atmosphere conducive to achieving a viable and credible solution to the conflict between Israelis and Palestinians. If there is to be genuine peace, a way must be found to resolve the status of Jerusalem as the future capital of two states.