


This expansion prejudges the outcome of final status negotiations and threatens the viability of an agreed two-state solution. Israeli settlements in the occupied Palestinian territory: the EU has repeatedly confirmed its deep concern about accelerated settlement expansion in the West Bank including East Jerusalem.These should be based on a withdrawal from the territory occupied in 1967 with minor modifications mutually agreed, if necessary, in accordance with UNSC Resolutions 242, 338, 1397, 14 and the principles of the Madrid Process. Borders: The EU considers that the future Palestinian state will require secure and recognised borders.The EU has welcomed the Arab Peace Initiative as a significant contribution from the Arab countries. The EU – with the UN, the US and the Russian Federation – is a member of the ' Quartet' which in 2002 launched a ‘road map for peace’ aimed at resolving the conflict. It has also consistently called for intra-Palestinian reconciliation and holding of democratic elections. To that end, the EU undertakes a range of activities – both political and practical – and is the largest donor to Palestinian state-building efforts aiming at a Palestinian state based on the rule of law and respect of human rights. A way must be found through negotiations to resolve the status of Jerusalem as the future capital of both states. Fulfilment of the aspirations of both parties for Jerusalem.A just, fair, agreed and realistic solution to the refugee question.

Security arrangements that, for Palestinians, respect their sovereignty and show that the occupation is over and, for Israelis, protect their security, prevent the resurgence of terrorism and deal effectively with security threats, including with new and vital threats in the region.The EU will recognize changes to the pre-1967 borders, including with regard to Jerusalem, only when agreed by the parties. An agreement on the borders of the two states, based on the 4 June 1967 lines with equivalent land swaps as may be agreed between the parties.The EU is willing to work with its partners to re-launch peace negotiations, based on the following parameters: If an agreement to finally end the conflict were to be reached, the door would open to a deepened and enhanced cooperation among all the countries of the region. A lasting solution must be achieved on the basis of the relevant UN Security Council Resolutions, the Madrid principles including land for peace, the Roadmap, agreements previously reached by the parties and of the Arab Peace Initiative. A one state reality would not be compatible with these aspirations. In our view, the only way to resolve the conflict is through an agreement that ends the occupation which began in 1967, that ends all claims and that fulfils the aspirations of both parties. The EU has consistently expressed its concerns about developments on the ground, which threaten to make a two-state solution impossible.
