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Source: http://www.timesofisrael.com/eu-set-to-reassess-ties-if-israel-doesnt-move-on-peace/
EU Threatening Sanctions Against Israel over Settlements
(Times of Israel) Raphael Ahren - EU officials have started working on mechanisms to impose penalties against Israel if it fails to make progress toward a two-state solution and continues its current policy of allowing construction beyond the pre-1967 lines, a senior European diplomat told the Times of Israel. Indeed, some in the EU are currently considering implementing a mechanism that would immediately penalize Israel for every step deemed unhelpful to the peace process (such as settlement expansion), the diplomat said. If Jerusalem were to approve another building project in eastern Jerusalem, for example, the EU could opt to introduce a labeling regime for products from West Bank settlements. The details of possible punitive measures are currently being discussed in several working-level meetings in Brussels, the diplomat said.