The European Union has condemned the Israeli government's decision to allocate significant new funding to settlement expansion in the West Bank and its declaration of the settlement Givat Ze'ev as an official municipality of Israel. In a statement on 17 July 2026, EEAS spokesperson Anouar El Anouni said the funding would entrench settlements in sensitive areas, fragment Palestinian communities, and expose them to greater risks of human rights violations. The EU reiterated its non-recognition of Israeli sovereignty over territories occupied since June 1967, in line with UN Security Council resolutions, and called on Israel to halt settlement expansion, legalisation of outposts, land appropriation, demolitions, evictions, and other unilateral measures that undermine the two-state solution.

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