JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Israel Progress in 2012 and recommendations for action Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS European Neighbourhood Policy: Working towards a Stronger Partnership
Date: 2013-03-20
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Israel, democratisation, economic integration, economic reform, educational reform, institutional reform, political cooperation, political reform, sustainable development, trade cooperation

EUROPEAN 
COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR
FOREIGN AFFAIRS AND
SECURITY POLICY

Brussels, 20.3.2013  
SWD(2013) 91 final 

JOINT STAFF WORKING DOCUMENT 

Implementation of the European Neighbourhood Policy in Israel 
Progress in 2012 and recommendations for action 

Accompanying the document 

JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

European Neighbourhood Policy: Working towards a Stronger Partnership 

{JOIN(2013) 4 final} 
{SWD(2013) 79 final} 
{SWD(2013) 80 final} 
{SWD(2013) 81 final} 
{SWD(2013) 82 final} 
{SWD(2013) 83 final} 
{SWD(2013) 84 final} 
{SWD(2013) 85 final} 
{SWD(2013) 86 final} 
{SWD(2013) 87 final} 
{SWD(2013) 88 final} 
{SWD(2013) 89 final} 
{SWD(2013) 90 final} 
{SWD(2013) 92 final} 
{SWD(2013) 93 final} 

EN 

   EN 

 
 
 
 
  
 
 
 
1.  

OVERALL ASSESSMENT AND RECOMMENDATIONS FOR ACTION 

This document reports on progress made on the implementation of the European Union (EU) – 
Israel European Neighbourhood Policy (ENP) Action Plan between 1 January and 31 December 
2012, although developments outside this period are also taken into consideration when deemed 
relevant.  It  is  not  a  general  review  of  the  political  and  economic  situation  in  Israel.  For 
information  on  regional  and  multilateral  sector  processes  readers  should  also  refer  to  the 
Partnership for Democracy and Shared Prosperity progress report. 

The  EU-Israel  Action  Plan  was  adopted  in  April  2005  for  a  period  of  three  years.  Its  validity 
was  extended  until  the  end  of  2012.  The  2005  Action  Plan  provides  the  general  political 
framework for bilateral relations. 

Israel made reasonable overall progress in the implementation of the Action Plan. Although the 
EU consensus on freezing the upgrade of EU-Israel relations remained unchanged, an effort was 
made in 2012 to inject greater dynamism into the partnership. The work that had been underway 
since April 2011 under the technical talks between Israeli ministries, the EEAS and Commission 
services was completed in 2012 and endorsed by the EU-Israel Association Committee, which 
met  on  2  May  for  the  first  time  after  four  years,  and  by  the  EU-Israel  Association  Council, 
which  met  on  24  July.  The  EU  and  Israel  agreed  to  exhaust  the  opportunities  offered  by  the 
current Action Plan and to proceed with carrying out initiatives that had already been included 
in the Action Plan in a number of sectors and policy areas but had not been implemented so far. 
In addition, the two sides identified potential areas for future cooperation, where discussions on 
implementation could begin as soon as the conditions for upgrade were met. Practical measures 
were  agreed  with  a  view  to  rendering  sector  policy  dialogue  and  political  dialogue  more 
efficient and effective, with implementation to be followed in 2013. 

Domestic  political  developments  in  2012  indicated  that  the  previous  trend  of  tabling  in  the 
Knesset a number of bills that could be labelled as "discriminatory" or even "anti-democratic" 
has somewhat subsided. As regards human rights, despite conducting a number of consultations 
with representatives of unrecognised Bedouin villages, the government has failed at this stage to 
make its Prawer Plan comply with the Goldberg Commission’s  earlier recommendations for a 
broad recognition of Bedouin villages. 

The EU continued to encourage both the Israelis and the Palestinians to return to the negotiating 
table and led efforts to reinvigorate the Quartet. In the Foreign Affairs Council Conclusions of 
14 May the EU reaffirmed its commitment to a two-state solution and expressed grave concern 
about  developments  on  the  ground,  which  threaten  to  make  it  impossible.  There  was  a  major 
escalation of violence between armed groups in Gaza and Israel in November 2012, followed by 
a ceasefire brokered by Egypt and the US. On 29 November, Palestine was granted non-member 
Observer State status in the United Nations, through a vote in the UN General Assembly. Israel 
reacted by announcing the extended construction of settlements in the West Bank, in particular 
in the so-called E1 area and in East Jerusalem, and withheld the transfer of Palestinian tax and 
customs  revenues.  The  EU  Foreign  Affairs  Council  in  December  expressed  deep  dismay  and 
strong opposition to the Israeli moves, stating that the Union would closely monitor the situation 
and  act  accordingly.  Moreover,  political  developments  in  Egypt  and  continued  hostilities  in 
Syria also changed the security context and prospects for comprehensive peace in the region. 

Economic growth in Israel continued to slow down in 2012, weakening domestic demand and 
moderating export growth as foreign demand weakened along with the difficulties in the global 

2 

 
economy.  Inflation  remained  contained.  In  efforts  to  support  economic  activity,  the  Central 
Bank of Israel lowered its policy rate. As the result of a significant slowdown in fiscal revenues 
and continuous increase in expenditure, the fiscal deficit is estimated to have missed its targets 
in 2012, thus postponing the government's debt reduction efforts. In an important step towards 
achieving the Action Plan goal of deepening and enhancing the economic dialogue between the 
EU  and  Israel,  the  first  meeting  of  the  EU-Israel  Sub-Committee  on  Economic  and  Financial 
Matters  (as  foreseen  under  the  EU-Israel  Association  Council  in  2005)  took  place  in  January 
2012. 

In the area of the internal market, the approval and entry into force of the EU-Israel Agreement 
on Conformity Assessment and Acceptance of industrial products (ACAA) will improve market 
access  for  both  European  and  Israeli  products  without  additional  certification.  Now  that  Israel 
has  made  substantial  progress  in  amending  its  intellectual  property  rights  legislation,  efforts 
towards  bringing  this  legislation  into  line  with  its  commitments  within  the  Organisation  for 
Economic  Cooperation  and  Development  (OECD)  should  continue.  The  EU  encourages  the 
Israeli  authorities  to  proceed  swiftly  with  the  signature  of  the  comprehensive  civil  aviation 
agreement initialled in July. Cooperation in science and technology continued successfully. 

Irregular migration continued to be a serious challenge for Israel. The imposition of sanctions, 
as  exemplified  by  the  anti-infiltration  law  and  threat of  mass  arrest,  provoked  criticism  from 
civil society, the international community and some Israeli institutions, although steps towards a 
regularisation of the status of migrants and improvements to their health and welfare situation, 
should be encouraged. The EU welcomes Israel’s efforts to curb human trafficking and is ready 
to enhance bilateral cooperation on the fight against drugs. 

The  situation  in  the  occupied  territories  remained  tense,  given  the  stalled  peace  process  and 
worrying developments on the ground, including increased settlement activity in East Jerusalem 
and the rest of the West Bank. Exercise of the freedom of association and freedom of expression 
continued to be problematic. However, the Israeli army recently stepped up interventions against 
settler  violence,  including  the  creation  of  a  special  unit  within  the  police  to  deal  with  Jewish 
terrorists. The overwhelming majority of cases filed with the Israeli police against such attacks 
were  closed  without  indictment.  Israel’s  use  of  administrative  detention  of  Palestinians 
decreased in 2012, although its spread and length are still excessive. Palestinian economic and 
social  rights  remain  hampered  by  Israeli  restrictions  on  freedom  of  movement,  especially  in 
relation to the economic and physical isolation of the Gaza Strip. 

Further to the recommendations made in the previous year’s report, no significant changes were 
observed  in  the  respective  fields.  On  the  basis  of  this  year’s  report  and  with  a  view  to  the 
sustained implementation of the 2005 EU-Israel ENP Action Plan in 2013, Israel should: 

•  Step up cooperation with the EU on implementing activities under the 2005 ENP EU-Israel 
Action Plan which were identified at the 2 May 2012 meeting of the EU-Israel Association 
Committee but which have not yet been implemented. 

•  Continue and intensify efforts to curb settler violence in Palestine and bring all perpetrators 

to justice. 

•  Address the excessive use of administrative detention. 

•  Bring  internal  procedures  for  stateless  people  in  line  with  the  1958  Convention  on  the 

Status of Stateless Persons. 

3 

 
•  Ratify  the  Second  and  the  Third  Protocol  to  the  2003  UN  Convention  on  Transnational 
Organised  Crime  on  the  illicit  manufacturing  of  and  trafficking  in  firearms,  their  parts, 
components and ammunition. 

•  Ensure  further  progress  in  amending  legislation  on  intellectual  property  rights  to  bring  it 

into line with OECD commitments. 

• 

Implement the commitment expressed by the government to ensure the independence of the 
Equal Employment Opportunities Commission and provide it with adequate resources. 

•  Address control deficiencies for plant and plant products for export. 

•  Sign  and  ratify  the  regional  Convention  on  pan-Euro-Mediterranean  preferential  rules  of 

origin. 

•  Proceed towards the signature of the EU-Israel comprehensive civil aviation agreement. 

•  Take additional measures to lower carbon emissions, in line with international agreements. 

2.  

POLITICAL DIALOGUE AND REFORM 

Deep and sustainable democracy 

In the field of freedom of association, the trend described in previous reports of tabling bills in 
the Knesset that can be considered anti-democratic abated somewhat in 2012. No new laws were 
adopted  in  this  category;  initiatives  to  tax  foreign  funding  of  non-governmental  organisations 
were  shelved.  The  Supreme  Court  tried  to  discourage  appeals  that  were  qualified  as 
"unnecessary", by introducing much higher penalties in such cases, which could potentially eat 
into much of smaller NGOs’ budgets. 

In spite of a number of bills that had been tabled to influence the composition and competences 
of  the  Supreme  Court,  the  independence  of  the  judiciary  continued  to  be  protected, 
notwithstanding  the  Knesset’s  decision  to  shorten  the  minimum  tenure  for  Supreme  Court 
presidents from three to two years, thus enabling a particular individual to be appointed. 

Israel performed well in the fight against corruption, ranking 39th in 2012 in the Transparency 
International Corruption Perceptions Index. Although Israel’s ranking declined (30th position in 
2010 and 36th in 2011), it is still the highest level in any ENP partner country, and higher than a 
number of EU Member States. 

Other human rights and governance-related issues 

Israel is party to most international human rights instruments, but not to their optional protocols. 
Israel  abolished  the  death  penalty  during  peacetime  in  1954  with the  exception  of  convictions 
for  genocide,  crimes  against  humanity,  war  crimes  and  crimes  against  the  Jewish  people.  In 
2012,  Israel  decided  to  disengage  from  the  Human  Rights  Council  in  Geneva  and  from  the 
Universal Periodic Review. Specific human rights cases were raised with the Israeli authorities 
in demarches and day-to-day contacts, as well as during the meetings of the EU-Israel political 
dialogue  sub-committee  (held  on  11  December)  and  the  informal  working  group  on  human 
rights (held on 15 January 2013). 

4 

 
Eleven  projects  were  selected  for  financial  support  under  the  European  Instrument  for 
Democracy and Human Rights (EIDHR) and the Neighbourhood Civil Society Facility (CSF), 
with 28 other EIDHR projects ongoing. These projects contribute to the priorities identified in 
the Action Plan: respect and promotion of rights of people belonging to minorities; respect for 
human rights and international humanitarian law; and the fight against racism, xenophobia and 
anti-Semitism. 

As regards the rights of minorities, progress on the situation of the Arab minority was limited. 
The percentage of Israeli Arabs in the civil service workforce has not yet reached the 10% target 
set for 2012 by law. Budget discrimination remains an issue, although there was an increase of 
approximately 5% in funds allocated in 2012 compared to 2011. 

In  the  wake  of  criticism,  the  government  increased  consultations  with  representatives  of 
unrecognised  Bedouin  villages  on  the  government’s  Prawer  Plan,  which  had  proposed  the 
relocation of 30-40 000 Bedouins in the Negev in the context of an economic development plan 
but  without  full  recognition  of  land  ownership  and  with  limited  scope  for  legalising 
construction. So far, no final decision has been taken on adjustments to or implementation of the 
plan,  which,  in  its  present  form,  falls  short  of  the  Goldberg  Commission’s  earlier 
recommendations for a broad recognition of Bedouin villages. 

Although  less  prominent  than  in  2011,  and  in  spite  of  clear  positions  expressed  by  the  Prime 
Minister  and  other  top  politicians,  women’s  rights  continued  to  be  the  subject  of  debate  as  a 
result  of  a  more  aggressive  attitude  of  ultra-Orthodox  groups  towards  separating  men  and 
women  in  the  public  sphere,  including  beyond  the  traditional  Jewish  Orthodox  communities. 
The legal position of women was significantly improved by several new pieces of legislation: on 
the retirement age for women (62-64 instead of the proposed 67); on facilitating the granting of 
divorce; on allowing women staying in shelters for battered women to continue to receive basic 
welfare  pension  and  on  extending  the  time  limit  for  filing  complaints  relating  to  sexual 
harassment. 

Israel signed the UN Convention on the Rights of the Child in 1990 and ratified it in 1991, but 
did not follow this with any legislative or administrative steps. In Israeli legislation children are 
not  recognised  as  a  population  group  with  specific  needs.  A  draft  law  was  submitted  to  the 
Knesset  in  March  2012  aimed  at  establishing  a  Commission  for  Children's  Rights,  which 
would be part of the Ministry of Justice and would be responsible for promoting and defending 
the rights of children and for coordinating government measures in this regard. 

Israel ratified the UN Convention on the Rights of Persons with Disabilities in September 2012. 
Two  EIDHR  projects  accompany  Israel's  steps  towards  the  transposition  of  the  Convention's 
provisions into domestic legislation. 

There  is  no  legal  discrimination  in  Israel  based  on  sexual  orientation  and  hate  crimes  are 
limited.  LGBT  (lesbian,  gay,  bisexual  and  transgender)  rights  are  largely  accepted  and 
protected. 

The sixth EU-Israel seminar on the fight against anti-Semitism, racism and xenophobia took 
place  in  Jerusalem  in  June,  bringing  together  officials,  diplomats  and  experts  from  both  Israel 
and  the  European  Union.  It  proved  very  useful  for  exchanging  information  on  trends  and 
developments in EU Member States and in Israel on these problems and for outlining possible 
responses. 

5 

 
Cooperation on foreign and security policy, regional and international issues, conflict 
prevention and crisis management 

Throughout 2012 the EU continued to encourage both the Israelis and the Palestinians to return 
to  the  negotiating  table.  However,  the  Palestinians  did  not  stray  from  their  position  whereby 
they  could  only  re-enter  negotiations  if  Israeli  settlement  construction,  including  in  East 
Jerusalem,  was  frozen,  a  demand  with  which  Israel  did  not  comply.  During  most  of  2012,  no 
major  initiative  was  taken  by  the  parties  to  try  to  re-start  negotiations.  In  the  Foreign  Affairs 
Council  conclusions  of  May  and  December  2012  on  the  Middle  East  peace  process,  the  EU 
reaffirmed  its  commitment  to  a  two-state  solution  and  expressed  grave  concern  about 
developments on the ground, which threatened to make a two-state solution impossible. 

In November 2012, there was a major escalation of violence between armed groups in Gaza and 
Israel,  leading  to  the  death  of  more  than  160  Palestinians  and  five  Israelis.  A  ceasefire  was 
eventually  agreed  in  indirect  negotiations  between  Israel  and  the  de  facto  authorities  in  Gaza, 
thanks  largely  to  mediation  efforts  by  Egyptian  President  Morsi  and  the  United  States.  The 
terms of the ceasefire agreement call for further negotiations aimed at opening up the crossings 
into Gaza. In the Foreign Affairs Council conclusions of December 2012 the EU expressed its 
readiness to make use of its instruments in support of the parties’ efforts, including the possible 
reactivation, in the appropriate way, of the EUBAM Rafah mission. 

On  29  November,  Palestine  was  granted  non-member  observer  State  status  in  the  United 
Nations, through a vote in the UN General Assembly. After this vote, Israel announced that it 
would increase the construction of settlements in the West Bank, in particular in the so-called 
E1  area  and  in  East  Jerusalem  and  that  it  would  withhold  the  transfer  of  Palestinian  tax  and 
customs  revenues  and  offset  these  revenues  against  Palestinian  debts  to  Israel.  This  Israeli 
reaction  was  widely  criticised  by  the  international  community,  including  the  EU.  On  10 
December, the EU Council adopted conclusions expressing deep dismay and strong opposition 
to Israeli plans for new settlement construction, stating that the Union would closely monitor the 
situation  and  its  broader  implications,  and  act  accordingly.  Efforts  are  ongoing  among  key 
players  of  the  international  community,  notably  in  contacts  between  Middle  East  Quartet 
members,  to  try  to  move  beyond  the  current  confrontation  between  the  parties,  to  create  the 
conditions for resuming direct negotiations without pre-conditions. 

The changes in the political landscape in Egypt caused a steadily deteriorating security situation 
in  the  Sinai.  Following  an  attack  by  terrorists  in  August  that  left  a  number  of  Egyptian 
policemen  dead  and  whose  ultimate  aim  was  to  stage  a  large-scale  attack  in  Israel,  Egypt 
temporarily moved into the Sinai more military force than allowed in the military annex of the 
Israel-Egypt 1979 peace treaty. The Israeli reaction was low key out of concern for safeguarding 
the peace treaty. 

In  Israel  there  was  continued  concern  about  a  possible  spill-over  from  hostilities  in  Syria, 
particularly the risk that chemical and/or biological weapons might fall into the hands of rogue 
groups. In spite of Israeli efforts towards a rapprochement with Turkey, such as inviting a group 
of Turkish journalists, bilateral relations continued to be strained as a consequence of the 2010 
Mavi Marmara incident and the fact that Israel was not prepared to meet Turkey's demand for an 
apology.  

6 

 
 
3.  

ECONOMIC REFORM, SOCIAL REFORM AND DEVELOPMENT 

Macroeconomic framework1 

In 2012 the economic growth slowed down to 3.3%, from 4.6% in 2011. The moderation was 
mostly  a  result  of  slowing  of  both  domestic  and  external  demand.  As  a  result  of  weakening 
demand  pressures  inflation  continued  to  slow  down  in  the  first  half  of  2012;  it  reached  its 
lowest point (1%) in June 2012 but on average was of 1.7% in 2012. From late 2011 the Bank of 
Israel's  monetary  policy  responded  to  slowing  growth  and  inflation  by  decreasing  the  interest 
rate, to in 1.75% in December 2012. 

The shekel strengthened by 2.3% against the US dollar and 0.4% against the Euro, adding to the 
slowdown of exports grew that grew by only 1.1% year-on-year in 2012(they rose by 5.5% in 
2011). At the same time, import growth slowed to 3.2% year-on-year from 11.1% in 2011. A 
deficit of 0.6% of GDP in the current account is expected in 2012. 

A sharp drop in fiscal revenues, by 2.9% in 2012, and growth in government  expenditures by 
7.0% in the same period have led to an increase of the fiscal deficit of 4% of the GDP 2012. In 
an effort to contain the deficit to 3% in 2013, the government increased the VAT and the income 
tax. 

As  an  important  step  towards  the  Action  Plan  goal  of  maintaining  the  economic  dialogue 
between the EU and Israel, the first meeting of the EU-Israel Sub-Committee on Economic and 
Financial Matters took place in January 2012. 

Employment and social policy 

Unemployment in 2012 is estimated at 6.5%, compared to 6.8% in 2011. Deep socio-economic 
and income disparities (with a Gini coefficient of 0.378 for 2011) subsisted and Israel still has 
the  highest  poverty  rate  among  OECD  countries.  Arab-Israelis  and  ultra-Orthodox  Jews 
continued to register the highest rates of unemployment and poverty. 

 As  regards  social  policy  social  unrest  continued  in  2012,  though  less  intensively.  The 
government  accepted  some  of  the  recommendations  of  the  Trajtenberg  Committee,  but  their 
impact  has  yet  to  be  felt.  In  this  context,  the  government  approved  a  plan  to  finance  free 
education as from the age of three. Discussions were launched on a draft law aimed at putting a 
cap on senior management’s salaries. 

On  social  inclusion,  the  Twinning  project  with  the  Israeli  Equal  Employment  Opportunities 
Commission (EEOC) ended in February successfully achieving its goals. The project shared EU 
experience and promoted laws in Israel concerning equality in the workplace. The Ministry for 
Industry,  Trade  and  Labor  expressed  its  continued  commitment  to  ensuring  the  EEOC's 
independence and providing it with adequate resources. 

1 Figures on GDP, inflation, trade and employment are generally from Eurostat based on data supplied by the 
national statistical offices; or IMF or Commission Staff estimates, as indicated in the Statistical Annex. When other 
data sources are used these are then indicated. 

7 

 
 
                                                 
4.  

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

The  EU  is  Israel's  main  trading  partner  accounting  for  32%  of  its  trade  volume  in  20112. 
Bilateral trade flows remained stable and during the first eleven months of 2012 amounted to 
EUR  27.3  billion.  EU  exports  to  Israel  consisted  mainly  of  machinery,  chemicals,  as  well  as 
vehicles  and  transport  equipment.  EU  imports  from  Israel  consisted  mainly  of  chemicals, 
machinery and transport equipment as well as pearls and precious stones. 

There  were  no  significant  developments  in  the  customs  area.  The  number  of  companies  with 
Authorised  Economic  Operator  (AEO)  status  slightly  increased  during  the  reporting  period. 
Israel is yet to sign and ratify the regional Convention on pan-Euro-Mediterranean preferential 
rules  of  origin.  Israel  regularly  participated  in  the  meetings  of  the  pan-Euro-Med  Working 
Group which is currently dealing with the revision of the rules of origin in the framework of the 
regional Convention. 

Regarding sanitary and phyto-sanitary issues, a twinning project was launched in February. It 
aims to harmonise Israeli veterinary quality control procedures for animal feed, animal welfare 
and  food  of  animal  origin  with  EU  standards.  Israel  participated  in  a  Commission/European 
Food  Safety  Agency/TAIEX  supported  Mediterranean  seminar  on  animal  identification  and 
disease control measures that was held in September in Cyprus. 

On  agriculture  and  rural  development,  a  twinning  project  to  help  the  Israeli  Ministry  of 
Agriculture  and  Rural  Development  ‘Reinforce  National  Policy  and  Tools  for  Implementing 
Rural Development in Israel’ was finalised. 

On the free movement of goods and technical regulations, the EU-Israel ACAA entered into 
force  in  January  2013  after  obtaining  the  European  Parliament’s  consent  on  23  October.  The 
Agreement  contains  an  annex  on  good  manufacturing  practices  for  pharmaceutical  products 
which will enable EU-certified pharmaceuticals to be placed on Israel’s market and vice-versa, 
without additional certification. Other priority sectors could be included in the Agreement once 
Israel is ready with the legislative alignment and the implementing infrastructure. 

The business climate in Israel benefits from a high level of investment protection and ease of 
trade  across  borders.  However,  the  handling  of  construction  permits  and  the  registration  of 
property could be improved. Compared to the previous year, Israel dropped slightly to 38th place 
(out of 185) in the ease of doing business ranking in the World Bank’s ‘Doing Business 2013’ 
annual report. 

In the area of financial services, the European Regional Committee (ERC) of the International 
Organisation  of  Securities  Commissions  accepted  the  Israeli  Securities  Authority  as  a  full 
member. From June 2012, foreign lawyers were allowed to practise law in Israel and foreign law 
firms were allowed to collaborate with Israeli law firms. 

There  were  no  significant  developments  in  the  areas  of  company  law,  movement  of  capital 
and current payments. 

Other key areas 

The agreement on avoidance of double taxation between Denmark and Israel entered into force 
in  January.  The  agreement  with  Malta  signed  in  July  2011  has  not  yet  entered  into  force. 

2 Data for 2012 was not available at the time of writing. 

8 

 
                                                 
Discussions  between  Israel  and  Cyprus  (the  only  remaining  Member  State  without  such  an 
agreement with Israel) are ongoing. 

In the area of competition, the Knesset approved a law allowing the Israel Antitrust Authority 
to impose administrative fines of up to approximately EUR 4.8 million in specified cases. 

Israel  made  substantial  progress  in  amending  its  intellectual  property  rights  legislation  with 
respect  to  patent  term  extension,  namely  regarding  the  publication  of  patent  applications  18 
months after being submitted. A new law, approved in July, allowed for third-party intervention 
on a patent application, with no possibility of extending the deadline for approval of the patent, 
thus putting the patent owner at a disadvantage. Data exclusivity on biological products and the 
issue of third-party intervention in the patent approval process remain areas of concern. 

In  the  framework  of  the  WTO,  Israel  negotiated  the  phasing  out  of  its  public  procurement 
offset benefits. The agreement refers to a gradual fifteen-year phasing out, with a 20% offset in 
the  first  eight  years  after  signing  and  18%  in  the  remaining  years.  Negotiators  agreed  to 
commitments in March. The Government Procurement Agreement will now have to be ratified 
by the Parties. 

A  twinning  project  has  been  launched  to  support  the  Israeli  Central  Bureau  of  Statistics  in 
improving  national  accounts,  education  statistics,  survey  methodologies,  the  website,  and  the 
coordination  of  the  Israel  National  Statistical  system.  For  the  first  time,  monthly  estimates  of 
work  and  employment  were  published,  covering  the  demand  and  supply  sides  of  the  labour 
market.  Together  with  the  Job  Vacancies  Survey,  and  the  Business  Tendency  and  Consumer 
Confidence  Surveys  they  provide  a  comprehensive  picture  of  the  labour  market.  A  major 
development is the launch of the Rolling Integrated Census, based on administrative files, which 
makes it possible to estimate the population on a yearly basis. 

As  regards  enterprise  policy,  Israel  continued  implementing  the  2011-2012  work  programme 
on Euro-Mediterranean industrial cooperation. 

In  the  area  of  consumer  protection,  a  law  obliging  airlines  to  compensate  passengers  for 
changes  in  flight  times  entered  into  force  in  August  2012.  It  covers  flight  cancellations,  long 
delays and early departures, downgrades in seating arrangements and overbooking. 

5. 

 COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

In  the  area  of  irregular  migration  and  asylum  Israel  started  implementing  the  new  Anti-
Infiltration Law. This law substantially increased the sanctions for migrants who had irregularly 
entered Israeli territory, but did not include adequate safeguards for the fact that they might need 
for  international  protection.  Israel’s  policy  to  address  mixed  migratory  flows  coming  from  the 
Sinai  was  based  exclusively  on  the  principle  of  deterrence.  Work  on  the  fence  along  the 
Egyptian  border  is  very  nearly  complete.  Efforts  continued  to  increase  the  capacities  of 
detention  centres  and  to  relocate  individuals  from  third  countries.  The  Saharonim  detention 
centre has a capacity of 3000. A further 2500 places were allocated at the Ketziot prison. The 
construction of the new Raviv detention centre (with a capacity of 8000) was launched. 

Estimates at the end of 2012 indicated the presence of about 62,000 migrants who had entered 
Israel irregularly via the Egyptian border. Of these, 52,000 were Eritreans and North Sudanese 
who  had  been  granted  temporary  group  protection,  based  on  their  nationality.  After  June,  the 
number  of  newcomers  declined  substantially  (1946  in  May,  999  in  June,  216  in  July,  199  in 

9 

 
August,  134  in  September,  51  in  October  and  17  as  at  mid-November).  Following  the 
establishment of the state of South Sudan, the Israeli government decided to put an end to the 
group protection status of South Sudanese citizens and return them to their country. Out of the 
estimated  700-1,500  South  Sudanese,  most  returned  voluntarily  to  South  Sudan.  Each  person 
received  1,000  EUR  from  the  Israeli  government  and  was  encouraged  to  board  the  flights 
organised by the government in June. More recently, a more restrictive approach was reportedly 
applied by Israeli authorities also to Eritrean refugees.  In some cases, Eritreans were obliged to 
choose  between  return  to  Eritrea,  detention  in  Israel  as  irregular  migrants,  or  voluntary 
relocation towards third countries accepting them. 

Against this background, a positive step was taken by the government with regard to the health 
and  welfare  of  irregular  migrants and  of persons in need of international  protection  who  were 
already in  Israel. The Government decided to expand  by 1  January 2013  a small government-
funded  clinic  in  Tel  Aviv,  previously  staffed  by  volunteer  doctors,  so  as  to  provide 
paediatricians, family doctors, gynaecologists and X-ray services. Another positive step was the 
decision to allow, at least in principle, every irregular migrant in detention to undergo refugee 
status  determination  (RSD),  including  Eritreans  and  Sudanese,  who  had  previously  been 
excluded  because  of  temporary  group  protection.  This  change  may  be  significant  as  many 
Eritreans and Sudanese may be entitled to refugee status. It was also decided that the RSD unit 
would be substantially reinforced. 

In  November,  the  Population  Immigration  and  Border  Authority  issued  a  new  procedure  for 
dealing with stateless people living in Israel, whereby for the first time a stateless person may 
apply for recognition at the Ministry of the Interior, without being arrested. The procedure does 
not,  however,  comply  with  the  international  Convention  relating  to  the  Status  of  Stateless 
Persons which Israel ratified in 1958, as Israel does not provide social rights, health and welfare 
to stateless persons. 

An  EU  funded  project  on  migration  management  was  contracted  in  December  2012,  to  be 
implemented  by  the  Centre  for  International  Migration  and  Integration  in  partnership  with  the 
United Nations High Commissioner for Refugees (UNHCR) and the International Organisation 
for  Migration  (IOM).  The  project  will  support  the  development  of  a  migration  management 
framework in Israel in line with international standards and European best practices. 

Israel  has  made  substantial  progress  in  the  fight  against  trafficking  in  human  beings.  The 
dismantling of the special anti-trafficking police unit Sa'ar in 2011 led to a decentralisation of 
activities  to  regional  units  and  substantially  increased  human  resources.  An  Anti-Trafficking 
Police  Coordinating  Officer  was  appointed  to  ensure  coordination  between  the  units.  The 
reduction  of  trafficking  for  sex  purposes  was  particularly  successful.  A  TAIEX  workshop  on 
government-NGO  relations  in  the  field  of  trafficking  in  human  beings  took  place  in  May  in 
Haifa. 

Concerning the fight against financial crime, a TAIEX seminar on combating financial crime, 
money  laundering  and  asset  forfeiture  took  place  in  February  in  Tel  Aviv.  In  the  area  of 
counterterrorism,  in  September  Israel  launched  a  new  police  unit  to  help  investigate  Jewish 
terrorism crimes (“price tag” crimes). 

In May, Israel participated in the first Reitox Weekend of the European Monitoring Centre for 
Drugs  and  Drugs  Addiction  (EMCDDA)  in  Lisbon.  It  also  participated  in  the  Multi-Country 
Workshop on Drug Prevention and Monitoring: Situation and Perspectives in the ENP Southern 
Partnership countries organised by the European Commission and EMCDA under the auspices 

10 

 
of the Cypriot Presidency, which took place in Cyprus in October. Good progress was achieved 
in cooperation between the Israeli Anti-Drug Agency and EMCDDA. Israel expressed interest in 
negotiating a Memorandum of Understanding with EMCDDA.  

It  should  be  noted  that  Israel  is  considered  to  provide  an  adequate  level  of  protection  for 
personal  data  transferred  from  the  European  Union  in  relation  to  automated  international 
transfers of personal data (Commission Decision of 31.01.201, for the purposes of article 25(2) 
of Directive 95/46/EC). 

TRANSPORT,  ENERGY,  ENVIRONMENT,  THE  INFORMATION  SOCIETY,  RESEARCH  AND 

6.  
INNOVATION 

On transport, in July the EU and Israel initialled a comprehensive aviation agreement aimed at 
developing a common aviation area between the parties based on common rules. This agreement 
will  replace  bilateral  air-services  agreements  between  EU  Member  States  and  Israel.  The  EU 
urges  the  Israeli  authorities  to  proceed  swiftly  with  the  signature  of  the  agreement.  Israel 
cooperated with the Mediterranean Aviation Safety Cell (MASC) within the European Aviation 
Safety Agency (EASA) on regulatory convergence in the field of safety. 

Israel  continued  work  on  a  new  energy  master  plan-2050.  In  February  2012,  the  government 
approved  the  establishment  of  a  sovereign  wealth  fund  to  manage  royalties  from  the  (future) 
exploitation  of  gas  reserves.  In  August,  an  Inter  Ministerial  Committee  presented  its  final 
recommendations  to  the  government  on  how  to  use  the  country’s  natural  gas  resources.  The 
committee  estimated  the  amount  of  available  gas  at  1,480  billion  cubic  meters  (bcm).  It 
recommended, inter alia, that gas for domestic consumption should be guaranteed for 25 years 
and  that  a  maximum  of  500  bcm  be  permitted  for  export.  Also  in  2012  energy  security  was 
impacted  by  a  substantial  decrease  in  Egyptian  gas  imports  after  several  explosions  on  the 
import pipeline. In this context, Israel continued preparations to connect the offshore Tamar gas 
field  to  Israel’s  pipelines.  It  also  pursued  the  construction  of  a  maritime  buoy  to  receive 
liquefied natural gas. Israel and Cyprus launched a feasibility study to assess the possibility of 
interconnecting their electricity networks. Israel continued to implement energy efficiency and 
renewable  energy  measures,  including  work  on  a  30  MW  photovoltaic  power  plant  and  the 
replacement  of  less  efficient  domestic  appliances  by  more  efficient  ones.  The  EU  remains 
committed  to  re-launching  trilateral  energy  cooperation  with  Israel  and  the  Palestinian 
Authority. 

As  regards  climate  change,  Israel  approved  grants  (totalling  about  EUR  27  million)  to  the 
municipal,  industrial,  commercial  and  transportation  sectors  for  projects  and  incentives  to 
reduce  green  house  gas  emissions.  Regional  cooperation  on  climate  change  related  water 
availability  is  continuing  with  the  water  authorities  of  Israel,  the  PA  and  Jordan.  Israel  is 
encouraged to build capacity and engage in the new carbon market mechanism to be developed 
following the  17th and 18th sessions of the United Nations Framework Convention on Climate 
Change  Conference  of  the  Parties.  With  the  support  of  the  newly  launched  regional  technical 
assistance project for climate change and related matters, Israel is encouraged to devise a low-
carbon  development  strategy  and  step  up  its  mitigation  efforts.  Additional  efforts  should  be 
made to fully implement the Cancun and Durban agreements. 

On  environment,  the  “green  government”  project  was  approved  in  September.  Under  this 
project,  20%  of  the  equipment  and  supplies  purchased  by  ministries  must  be  environmentally 
friendly by 2020. Israel provided approximately EUR 14 million in financial incentives for the 

11 

 
establishment of waste-to-energy facilities. An Electronic Waste Law (based on EU legislation) 
and an Emissions Reporting Law were passed. A three year programme, costing about EUR 43 
million, was launched to rehabilitate the Kishon River. A twinning project is in preparation on 
the  implementation  of  a  system  of  integrated  pollution  prevention  and  control  (IPPC)  and  a 
pollutant release and transfer register (PRTR). 

Israel  actively  participated  in  ENPI-financed  regional  projects  namely  the  Sustainable  Water 
Integrated Management (SWIM) project and those falling under the Horizon 2020 de-pollution 
initiative  (the  Mediterranean  Environment  Programme  and 
the  Shared  Environmental 
Information System support project led by the European Environment Agency). 

Israel actively participated in the Integrated Maritime Policy (IMP-MED) technical assistance 
project under the ENPI South programme. 

In the area of civil protection, the flagship programme for Prevention of, Preparedness for, and 
Response to natural and man-made disasters (PPRD South) contributed to the establishment of a 
regional framework of disaster management authorities that could intervene collectively in the 
event of disasters overwhelming the affected country. Indeed, sustainable development requires 
adequate  disaster  risk  reduction  efforts.  Israel  is  among  the  168  governments  that  adopted  in 
2005 the "Hyogo Framework for Action: Building the Resilience of Nations and Communities 
to  Disasters",  which  emphasizes  the  central  role  of  disaster  risk  reduction  for  all  development 
policies. However, work on Disaster Risk Reduction (DRR) and climate adaptation is only at the 
beginning and  it will require considerable further  support  to  develop capacities and processes. 
DRR  policy  is  fostering  dialogue  with  Civil  Society  and  NGOs,  thus  contributing  to  a  more 
sustainable democracy. Analysis of the regulatory and institutional frameworks started with the 
aim  of  strengthening  capabilities  and  inter-ministerial  coordination  in  the  second  phase  of  the 
programme. 

On information society, a specific twinning cooperation project was completed with the Israeli 
telecommunications  regulator  and  all  expected  results  were  achieved.  The  project  identified 
concrete pricing methodologies, areas for approximation and consumer protection initiatives. It 
accompanied  Israel’s  reforms  aimed  at  increasing  competition  between  providers  of  fixed 
communications  services  by  opening  up  the  wholesale  markets.  The  EU  also  supported  the 
setting  up  of  a  computer  system  enabling  the  Ministry  to  implement  the  twinning 
recommendations on data collection, thereby facilitating interaction between operators and the 
regulator.  Competition  in  the  mobile  market  increased  with  the  arrival  of  new  entrants.  Israel 
has not yet established an independent regulatory authority for electronic communications. 

As  regards  audiovisual  policy,  Israel  worked  towards  the  establishment  of  a  Council  for 
Commercial  TV  and  Radio  Broadcasting.  This  new  body  will  have  all  the  regulatory 
responsibilities  that  are  now  divided  among  the  Second  Broadcasting  Authority  of  TV  and 
Radio, the Second Authority Council, and the Council of Cable and Satellite TV Broadcasting. 

In the area of research and innovation, the European Commission’s Joint Research Centre and 
the Israeli Ministry of Energy and Water Resources signed a memorandum of understanding for 
scientific cooperation on energy, with a particular focus on clean energy and water desalination. 
In 2012, there were 1 514 participations of Israeli institutions in 1 246 projects under the EU’s 
Seventh Framework Programme for Research and Technological Development (FP7). The total 
EU contribution to these projects amounted to more than EUR 4.5 billion, of which EUR 609 
million  were  for  the  Israeli  participating  entities.  Through  the  calls  for  proposals  that  Israel 
publishes  via  the  22  ERA-NETs  in  which  it  is  a  member,  Israel  provides  additional  research 

12 

 
funding. Israel is associated with FP7 and was very active in the European Research Council’s 
Ideas programme, which accounted for over 42% of the FP7 funding received by Israel. Under 
the  FP7  Cooperation  Programme  Israel  participated  most  actively  in  the  areas  of  information 
and  communications  technology,  health,  nanotechnology  and  security  research.  At  the 
December  2012  Joint  Committee  Meeting,  Israel  discussed  with  the  European  Commission 
various aspects of its possible association with Horizon 2020. 

7.  

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

Regarding education reform, Israel and the European Training Foundation (ETF) maintained a 
strong  relationship  in  their  joint  work  on  vocational  education  and  training  (VET).  This 
involved, in particular, information and knowledge sharing activities in relation to EU policies 
and  practice.  Israel  expressed  interest  in  working  on  qualifications  and  quality  assurance.  The 
ETF  provided  expertise  on  raising  awareness  and  knowledge  about  on-going  policies  and 
practices  in  these  two  fields  in  the  EU  and  in  the  EU  Member  States.  Israeli  ministries,  other 
VET actors and the Central Bureau of Statistics continued to take an active role in the so-called 
Torino process to assess the Israeli VET sector. 

In the area of higher education, Israel showed increased interest in participating in Tempus IV 
increased,  with  five  new  projects  selected.  Three  of  the  selected  projects  are  coordinated  by 
Israeli institutions - making this year's results the most important since Israel joined the Tempus 
programme  in  2008.  The  projects  focus  on  student  support  services,  internationalisation  of 
academic  colleges,  multicultural  education,  and  interdisciplinary  education  and  social  work 
study  programs.  The  most  visible  and  sustainable  contributions  of  Tempus  in  Israel  are  in  the 
areas of curriculum reform, the management of international relations offices and the promotion 
of  the  Bologna  Process.  Moreover,  a  significant  number  of  Tempus  projects  are  aimed  at 
creating links between higher education institutions and the world of work, in order to increase 
the  employability  of  graduates.  Israeli  students  benefitted  from  three  new  scholarships  for 
Erasmus  Mundus  joint  Masters  Courses  along  with  further  197  mobility  grants  allocated 
within a university consortium.  Israel made good use of Marie Curie actions (FP7) aimed at 
fostering  international  research  cooperation;  from  2007  until  the  end  of  2012,  over  377 
researchers  have  been  funded  and  Israeli  research  organisations  have  participated  in  390 
projects. No new Jean Monnet project was approved in 2012. 

Young Israelis and Israeli youth organisations continued to benefit from the Euromed Youth 
IV  programme.  The  EU  decided  to  add  an  extra  EUR  900,000  to  the  programme  in  Euromed 
Youth IV programme in Israel; 11 projects were selected targeting 47 young people. In addition, 
young Israelis and Israeli youth organisations participated in the Youth in Action programme; 
48 projects reaching 213 young people were selected in 2012. 

In the area of culture, Israel is not a party to the 2005 UNESCO Convention on the Protection 
and  Promotion  of  the  Diversity  of  Cultural  Expressions,  which  remains  a  stumbling  block  for 
developing bilateral relations in this field. 

In the framework of the Euromed Audiovisual III programme, the Israeli New Foundation for 
Cinema  and  Television  implemented  and  led  the  project  on  "Greenhouse:  Development  of 
Documentary  films  by  South  Mediterranean  Cinema  School  Graduates".  Under  the  EU’s 
“Investing  in  People”  programme,  two  Israeli  projects  were  carried  out  by  Arab  organisations 
from Israel, in partnership with organisations from Palestine and Europe. 

13 

 
Israel  is  implementing  its  health  policy  strategy  until  2020  as  well  as  a  tobacco  control  plan 
until  2015.  The  EU  and  Israel  strengthened  cooperation  on  prevention  and  control  of 
communicable  diseases  through  the  signature  of  an  administrative  arrangement  between  the 
European Centre for Disease Prevention and Control (ECDC) and its Israeli counterpart. Israel 
participated in the EU supported ‘Episouth Plus’ project aimed at increasing health security in 
the  Mediterranean  region  and  South  East  Europe.  Israel  participated  in  a  Commission/ECDC 
conference  and  training  course  aiming  to  strengthen  capacity  building  for  communicable 
diseases prevention and control in the Mediterranean. The aim is to jointly explore the scope for 
developing a regional training programme on intervention epidemiology. 

8.  

ISRAEL IN THE OCCUPIED TERRITORIES 

In  the  course  of  the  year,  255  Palestinians  (including  122  civilians)  as  well  as  9  Israelis 
(including 5 civilians) were killed in Israeli-Palestinian conflict-related incidents in Israel, the 
West  Bank  and  Gaza  Strip,  and  4785  Palestinians  and  242  Israelis  were  injured  (figures 
provided by the UN Office of the Coordinator for Humanitarian Affairs — OCHA). 

Settlement  construction  and  expansion  continued,  including  deep  into  the  West  Bank. 
Decision-making on the creation of new settlements was facilitated by delegating it from the full 
cabinet  to  a  "Ministerial  Committee  on  Settlement  Affairs".  Several  settlement  outposts 
(Bruchin,  Rehalim,  Sansana  and  Givat  Salit)  were  "authorised".  Given  the  absence  of 
formalities, they had been considered "illegal" even under Israeli law. So far, no decisions have 
been  taken  on  the  report  by  the  Levy  Committee,  which  the  government  entrusted  with 
examining the status of building in the West Bank. This Committee tried to provide a legal basis 
for the establishment of settlements by arguing that the West Bank was not occupied territory, 
recommending  the  "legalisation"  of  outposts  which  are  not  built  on  land  privately  owned  by 
Palestinians. Following rulings by the Supreme Court, which found that the Ulpana and Migron 
"illegal outposts" were built on private Palestinian land, their residents were relocated to nearby 
sites  in  the  West  Bank.  Of  particular  concern  are  plans  for  building  settlements  that  sever  the 
geographic  contiguity  between  East  Jerusalem  and  the  rest  of  the  West  Bank  (e.g.  E1,  Givat 
Hamatos)  as  they  undermine  the  prospect  of  a  two-state  solution  with  Jerusalem  as  the  future 
capital of two states. 

The exercise of media freedom,  freedom  of  expression and freedom of assembly remained 
problematic  in  Palestine.  The  “All  for  Peace”  radio  station  whose  closure  was  reported  in  the 
2011  report,  has  appealed  to  Israel’s  Supreme  Court  against  the  Israeli  Communications 
Ministry’s decision to shut it down. Violent clashes and crack-downs continued to occur during 
demonstrations  against  the  building  of  the  separation  wall.  Human  rights  defender  Bassem 
Tamimi was sentenced to 13 months, corresponding to the period he had been held during his 
trial, plus 17 months suspended for 5 years on counts of organising protests without a permit and 
solicitation  of  stone  throwing.  Almost  half  a  year  after  his  release,  he  was  arrested  again  and 
sentenced to four months." 

The  Israeli  Army  stepped  up  its  interventions  against  settler  violence.  However,  most  of  the 
cases filed with the Israeli police on the issue were closed without indictment. In October, Israel 
decided to create a special unit within the police tasked with foiling attacks by Jewish extremists 
in  the  West  Bank.  OCHA  recorded  353  cases  of  settler-related  incidents  in  2012.  These 
incidents  include  brutal  attacks  against  persons  and  damage  of  property,  most  notably  the 
uprooting or burning of olive trees. 

14 

 
There were several arson attacks against mosques in the West Bank and a marked increase in the 
number of arson  and graffiti attacks against  Christian monasteries and churches. A number of 
Christian communities across the West Bank, in addition to all Christians in Gaza, were unable 
to exercise their right to worship in Christian sites in Jerusalem and Bethlehem during Christian 
holidays,  due  to  Israeli  access  restrictions.  However,  on  the  occasion  of  Ramadan  an 
unprecedented  number  of  Palestinians  from  the  West  Bank  were  allowed  access  to  East 
Jerusalem and Israel for Friday prayers and family visits. 

By the end of November 2012 there were 4432 Palestinian prisoners and detainees in Israeli 
jails.  Israel  continued  to  make  excessive  use  of  the  administrative  detention  of  Palestinians, 
although the number of administrative detainees fell significantly from 307 in December 2011 to 
160 in January 2013. Of these, 71 have now been held in administrative detention for one to two 
years,  with  14  detainees  held  for  even  longer  periods.  During  the  year,  several  administrative 
detainees  went  on  hunger  strike  for  very  extensive  periods  in  protest  at  the  renewal  of  their 
detention. In  all cases,  a deal was ultimately struck at  an advanced stage  of the  hunger strike, 
with  the  authorities  pledging  not  to  renew  the  detention  beyond  the  expiration  date  of  the 
detention order or the detainee accepting transfer to Gaza. 

In the spring, a mass hunger strike spreading beyond the issue of administrative detention began, 
with  about  1600  sentenced  Palestinian  security  prisoners  taking  part  in  protests  against  their 
conditions  of  detention.  The  strike  ended  with  the  agreement  of  14  May  2012,  whereby  the 
Israeli authorities undertook to ease the conditions of prisoners held in separation and to grant 
family  visits  in  exchange  for  a  commitment  by  the  prisoners  to  cease  any  involvement  in 
terrorist activity in prison. 

The Israeli military continues to detain, prosecute and imprison Palestinian minors. By the end 
of 2012 there were 21 children under 16 years of age and 156 between the age of 16 and 18 in 
custody.  Throughout  2012  there  were  no  minors  held  in  administrative  detention.  Concerns 
remain  about  insufficient  protection  of  children  during  arrest  and  detention,  in  particular  the 
failure  in  the  majority  of  cases  to  permit  children  to  be  accompanied  by  a  lawyer  and  parent 
during questioning. Palestinian minors do not enjoy the same level of protection as is provided 
for under Israel's Youth Law or required by international law. 

A  new  military  order  (No.1685)  has  been  issued  reducing  from  eight  to  four  days  the  time 
within which detained children must be brought before the military court. This does not provide 
enough  protection  for  children,  who  are  at  their  most  vulnerable  in  the  first  48  hours  of 
detention. 

Palestinian economic and social rights are still hampered by Israeli restrictions on the freedom 
of  movement.  The  economic  and  physical  isolation  of  the  Gaza  Strip  is  still  a  source  of  great 
concern.  The  average  number  of  truck  loads  entering  Gaza  from  Israel  was  somewhat  higher 
than  in  2011,  while  exports  remained  extremely  low  compared  to  the  period  before  the 
blockade. After the escalation in Gaza in November, Israel extended the permitted fishing zone 
from 3 to 6 nautical miles from the Gaza shore. While this is a positive step, it still falls short of 
the 20-mile zone provided for in the Oslo Accords. 

Regarding  freedom  of  movement  in  the  West  Bank,  a  number  of  significant  easing  measures 
were  adopted  between  July  2011  and  June  2012,  reducing  travel  time  for  about  100  000 
Palestinians from their villages to six main cities. Palestinians travelling to and from Jerusalem 
were  also  assisted  by  easing  measures  at  the  Qalandia  checkpoint.  There  was  little  change  in 
restrictions on Palestinian movement to and from large rural areas, which are mostly related to 

15 

 
settlement  activity  across  the  West  Bank.  However,  on  3  October,  the  Ministry  of  Defence 
decided  that  henceforth  unrestricted  movement  would  be  permitted,  subject  to  security 
inspection at all crossings, between the Jordan Valley and the rest of the West Bank. 

Palestinian property rights continued to be under particular strain. According to OCHA, 598 
Palestinian  residential  and  non-residential  structures  were  demolished  by  Israel  in  East 
Jerusalem and the rest of the West Bank in 2012, thus displacing 886 persons, as against 1 094 
persons displaced in 2011. 

The EU expressed concern about the announcement by the Israeli Civil Administration that 20 
Bedouin  communities  living  in  the  periphery  of  East  Jerusalem  had  to  leave,  placing  2  300 
people, primarily refugees, at risk of forced displacement. This relocation would accommodate 
the expansion of the Ma’ale Adumim bloc of settlements (E-1 Zone). However, so far it has not 
been implemented. 

The participation in EU programmes of Israeli entities carrying out EU-funded activities in the 
occupied  territories  continued  to  raise  concerns  within  the  EU.  The  issue  will  be  addressed  in 
a horizontal  manner  for  the  EU's  2014-2020  programming  period  taking  into  account  EU 
positions and commitments in conformity with international law. 

16