Paris announced on March 27 that it would renew efforts to pass a resolution that would include a fixed timeframe for resolving the Israeli-Palestinian conflict and establishing a Palestinian state. Frustration and mistrust of Prime Minister Binyamin Netanyahu is growing even among Israel's strongest European allies, resulting in increased pressure on Israel on the Palestinian issue. Netanyahu's rejection of a Palestinian state on the eve of the March 17 Israeli general elections is moving European governments to reassess policy. If he succeeds in returning to office, Israel's relationship with the EU and European governments will face significant strain in the months ahead.
The EU will accelerate efforts to label settlement products and warn European companies of risks in settlement-related activities.
Military cooperation, intelligence sharing, and military sales between Israel and national governments will continue.
Escalatory Israeli actions in the West Bank or a new conflict could prompt European sanctions and legal action on settlements and firms.
Israel will seek to boost ties and trade with Asian countries to offset mounting pressure from Europe.
