Uri Savir writes: Inside the European Union there is an ongoing debate regarding the desirability and scope of sanctions and punitive resources in relation to the Israeli government’s settlement policies. According to a senior source in the French Foreign Ministry who spoke with Al-Monitor on condition of anonymity, France is considering sharp economic measures against Israeli goods and businesses east of the Green Line. Settlements, the French official argued, are illegal according to international law and the EU should not apply its agreements with Israel to them. Sharp economic measures would translate into labeling of goods exported from the settlements as such (and not as ”made in Israel”), and excluding Israeli academic, research and development and cultural institutions that are active in the West Bank from any European funds or grants. Brussels, according to this source, has toughened its stance on implementing these policies following Israel’s March 17 elections.

The French, the official added, are considering taking even more severe measures if a peace process on the two-state solution is not launched by the end of 2015. France intends to coordinate these policies with other EU countries.

In the meantime, the French themselves intend to rigidly ensure that all exported Israeli goods emanating from Israeli settlements are indeed labeled accordingly, and that any EU funding to Israeli entities will be dependent on the submission of a declaration stating that the entity in question has no direct or indirect links to the West Bank or East Jerusalem. Concretely, the first to be hurt by these measures would probably be Israeli banks with branches east of the Green Line. [Continue reading…]