European Council warns companies not to finance Israel's E1 West Bank settlement construction

The European Council has issued a stark warning to companies, stating they may face legal, economic, and reputational ramifications if they engage in financing Israel's E1 West Bank settlement construction. This advice comes as the settlement project inches closer to a 19 October deadline for tender bids. The proposed E1 development would construct thousands of new housing units between Jerusalem and the existing West Bank settlement of Maale Adumim, effectively splitting the West Bank in half and rendering a Palestinian state untenable.

The European Union's key policy-making body has urged Israel to halt the settlement expansion, which is deemed illegal under international law, and discouraged businesses from bidding on any related construction contracts. The council's stance is backed by all EU member states, and its warning follows Britain's recent sanctions targeting Israeli settlements.