Source: EURLEX
Language: en
Format: md

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# 52014SC0073

**JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Israel Progress in 2013 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 Neighbourhood at the Crossroads: Implementation of the European Neighbourhood Policy in 2013 /\* SWD/2014/073 final \*/**

  

1. OVERALL
ASSESMENT AND RECOMMENDATIONS

This document reports on overall progress made on the implementation
of the European Union (EU) — Israel European Neighbourhood Policy (ENP) Action
Plan between 1 January and 31 December 2013, 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 ENP Action Plan adopted in April 2005 provides the
general political framework for bilateral relations. The current Action Plan
was extended until the end of 2013. The EU continued to develop its bilateral relations with Israel, focusing on the 60 concrete activities identified by the EU-Israel Association
Council of 24 July 2012 which have yet to be implemented.

Although no Association Committee or Council meetings were held in 2013,
cooperation and bilateral dialogue continued to be active. At political level,
it was marked by visits to Israel by the High
Representative for Foreign Affairs and Security Policy/Vice President of the
Commission Catherine
Ashton and Vice Presidents of the Commission Antonio Tajani and Siim Kallas and
a visit to Brussels by the President of Israel. At technical level, regular
meetings of the bilateral sub-committees took place, complemented by visits by
senior officials and technical discussions in the context of the Twinning and
TAIEX instruments.

The year 2013 showed progress in several areas
of the Action Plan, such as the signature of the Comprehensive Aviation Agreement,
the entry into force of the Agreement on Conformity Assessment and Acceptance
of Industrial Products (ACAA) and an agreement on Israel’s participation in the
Horizon 2020 research programme. However, significant challenges
remain concerning the protection of minority rights and Israel’s responsibilities in the Occupied Territories.

Regarding domestic human right issues, Israel reversed its 2012
decision and participated in the Universal Periodic Review under the UN Human Rights Council. While there was
progress on the implementation of women’s rights, additional efforts are needed
to ensure the equality of all Israeli citizens, in particular as regard the rights of Arab minorities, including the
Negev Bedouins.

In the area of
foreign and security policy, the EU underlined its full backing for the
resumption of Israeli-Palestinian peace talks in August 2013, commended the
personal commitment of both President Mahmoud Abbas and Prime Minister Benjamin
Netanyahu and reiterated its support for a two-state solution based on an
agreement on all final status issues, offering a Special Privileged Partnership
to both parties if such agreement is reached. In parallel, the EU warned against actions that undermine the
negotiations. It deplored the continued expansion of settlements and expressed
grave concern regarding incitement, incidents of violence, house demolitions
and the deteriorating humanitarian situation in Gaza.

Israel agreed to the extension of the EU common
security and defence policy (CSDP) missions EUBAM Rafah and EUPOL COPPS.

Concerning regional developments, dialogue on the Mavi Marmara
incident resumed between Israel and Turkey, while political events in Egypt and Iran and continued hostilities in Syria had an impact on the security situation.

Economic growth slowed down slightly to 3.3 %,
from 3.4 % in 2012. On the fiscal front, Israel’s position deteriorated further in 2013, despite the ongoing fiscal consolidation
effort and the upward revision of GDP data in August. Cuts in social services
expenditure may, however, further increase the risks of social exclusion. Israel has deep socio-economic and income disparities and has the
highest poverty rate (20.9 %) among OECD countries.

EU-Israel trade and economic relations are already well developed
and are improving further. Israel signed the regional convention on pan-Euro-Mediterranean
preferential rules of origin as recommended in last year’s report. Industrial
pharmaceutical products’ access to the internal market was facilitated through
the entry into force of the EU-Israel ACAA. Israel continued to improve its
intellectual property rights legislation.

A significant development in 2013 was the signature of the
comprehensive EU-Israel civil aviation agreement, in fulfillment of last year’s
recommendations.

In order to set an adequate foundation for
Israel’s participation in EU programmes, the European Commission adopted
guidelines to ensure that, in line with the EU position regarding Israeli
settlements in occupied territories, Israeli entities and activities based in
settlements do not benefit from EU programmes. The future
development of the already intense cooperation in science and technology was
ensured through the agreement reached on Israel’s participation in the ‘Horizon 2020’ research and innovation programme.

Irregular migration remained a serious challenge for Israel. The vigorous enforcement of the anti-infiltration law and the detention of migrants
for criminal acts without trial provoked criticism from civil society, several
strikes and demonstrations, and a ruling from the Supreme Court. Steps
towards the regularisation of migrants and improvements to their health and
welfare situation should be encouraged. Israel pursued efforts to curb human
trafficking, money laundering and financial crimes, and showed interest in
cooperation with the EU in the fight against drugs.

Tension surrounding Israeli responsibilities in the Occupied Territories increased in 2013, in light of worrying developments on the ground,
including increased settlement activity and demolitions in East Jerusalem and
the rest of the West Bank. A positive step was the temporary loosening of
restrictions on movement and access in the West Bank and Gaza. After a first
positive trend in the aftermath of the Israeli 'Pillar of defense' operation in
Gaza, heavy restrictions were maintained throughout 2013 and continued to
constitue a severe burden for the Gaza population. However, Palestinian
economic and social rights remain hampered by many restrictions and, in Gaza, increased isolation as a result of this policy brought a deterioration of the economic
and humanitarian situation. Exercise of freedom of religion remained
problematic, despite some measures to improve Palestinian access to religious
sites. The Israeli authorities took some measures to counter violence committed
by settlers. Limited progress was made on decreasing
the administrative detention without trial of
Palestinians, but its use and length are still excessive. Efforts to increase the transparency and public accountability of the
security services should remain a priority, as recommended by the second part
of the Turkel Commission report released in February and positively received by
the Israeli government.

In 2013, Israel addressed some of the key recommendations from last
year’s report. The regional Convention on pan-European rules of origin was
signed as well as the EU-Israel comprehensive civil aviation agreement, and the
ACAA came in force. Other key recommendations contained in last year’s ENP
progress report have yet to be addressed, and remain valid. Cooperation between
Israel and the EU should
continue to focus on activities highlighted in 2012 from the 2005 ENP EU-Israel
Action Plan which have not yet been implemented. On the
basis of this year’s report and with a view to sustained implementation of the
ENP Action Plan in 2014, Israel is also invited to:

·
keep up the momentum in bilateral EU-Israel
cooperation including by focusing on activities from the 2005 Action Plan;

·
continue the commendable efforts to take bold
and concrete steps towards a just and lasting solution to the
Israeli-Palestinian conflict in the ongoing negotiation process;

·
bring internal procedures for stateless people
in line with the 1958 Convention on the Status of Stateless Persons;

·
continue and increase efforts to ensure the
equality of all Israeli citizens as regard to the rights of people belonging to
minorities, including the Negev Bedouins, and the rights of status-less
children (children born in Israel without legal residency status);

·
strengthen cooperation with the EU in UN bodies,
including on human rights issues, for example related to gender and disability;

·
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 takes place on amending
intellectual property rights legislation to bring it into line with OECD
commitments;

·
implement the government’s commitment to ensure
the independence of the Equal Employment Opportunities Commission and provide
it with adequate resources;

·
take additional measures to lower carbon
emissions, in line with international agreements;

·
ensure respect for international law and human
rights in the occupied territories, including intensifying efforts to curb settler
violence and minimising the use of administrative detention without trial;

·
ensure respect for international law and human
rights in the treatment of irregular migrants and asylum-seekers;

·
ratify the Regional Convention on
pan-Euro-Mediterranean preferential rules of origin.

2. POLITICAL DIALOGUE AND REFORM

Deep and sustainable democracy

The elections
to the 19th Knesset, held in January, were held in line with international
standards. Voter turnout was 67.78 %, up 2 % compared to 2009. The Israeli party system
remained volatile: newly created Yesh Atid became the second largest party in
the Knesset (19 seats). Kadima, the largest party in the previous Knesset, lost
all but two seats, barely passing the electoral threshold.

The resulting government, headed by Prime Minister
Netanyahu, was composed of four parties, mustering 68 of 120 Knesset seats. For
the first time since 2005, and for the third time in Israeli history, the
ultra-orthodox parties were absent from the government.

A bill on governance passed a first Knesset reading
in July. If passed in its current form, as an amendment to the ‘basic law on the
Government’ (i.e. a law with de facto
constitutional status), the bill would increase the
electoral threshold from 2 % to 4 %, limit the number of
ministerial posts to 19 and restrict opportunities for no-confidence motions in
the Knesset to once a month. Domestic debate continued over whether the
increase in the electoral threshold would unduly discriminate against parties
representing persons belonging to minorities.

A bill on the draft
of ultra-orthodox men into military service or national service passed the
Knesset committee in February 2014. If passed in its
current form, all ultra-orthodox men currently exempt from army service will
have to register for service after a four-year transitional period in order to
avoid criminal sanctions, except for 1 800 students who would receive an
exemption for Torah studies.

Another
government-backed bill passed its first Knesset reading in August. It was intended
to give de facto constitutional status to existing legislation requiring
a referendum on any peace treaty or plan that would involve the
withdrawal from or concession of territory considered sovereign under Israeli
law.

Some private
member bills were introduced that were criticised as infringing unduly upon freedom
of expression and freedom of association, e.g. a bill preventing the
registration of non-governmental organisations (NGOs) whose aims and purposes
are contrary to the definition of Israel as a ‘Jewish and democratic state’ and
imposing a 45 % tax on their foreign public funding. Only the latter
received government backing from a cabinet committee in 2013, but a subsequent
appeal by the Justice Minister prevented the bill from advancing further, with
discussions currently frozen.

According to
Transparency International, perception of corruption in Israeli public
sector was maintained at a relatively low level in 2013, where Israel was ranked 36th out of 177 countries.

Other human rights and governance-related issues

Israel is party to most international human rights instruments, but not to
their optional protocols. Human rights issues were raised with the Israeli
authorities in day-to-day contacts and at the seventh meeting of the Informal
Working Group on Human Rights held in January. For much of the year Israel continued to disengage from the Human Rights Council, but eventually ended its disengagement, taking part in its
Universal Periodic Review on 29 October.

The EU
delegation maintains a strong relationship with civil society organisations,
through regular consultations on cooperation and policy issues and training.

Thirty projects
supported by the European Instrument for Democracy and Human Rights (EIDHR) and
the Neighbourhood Civil Society Facility (CSF) were ongoing in 2013, including
eight projects that started in this period. These projects contribute to the
priorities identified in the ENP Action Plan, namely respect for and promotion
of the rights of people belonging to minorities; respect for human rights and
international humanitarian law, and the fight against racism, xenophobia and
anti-Semitism. The EU Delegation’s annual EIDHR/CSF call for proposals was concluded in October 2013 with eight projects selected. The projects
will be implemented from January 2014.

The Israeli
government promised to consider the recommendations of the second part of the
Turkel Commission report, released in February, on how Israel’s mechanisms for
investigating alleged breaches of law by military and security personnel comply
with Israel’s obligations under international law. The Turkel Commission was
established by Israel following the Mavi Marmara incident in May 2010. Its
recommendations focused on increasing accountability and transparency of the
security services, impartial and effective handling of complaints and the
independence of the Military Advocate-General.

Reports of torture
and other ill-treatment during arrests and interrogations continued to be made.
According to these reports, fifty complaints were filed with the Attorney
General in 2013, out of which two resulted in an investigation.

As regards the rights
of people belonging to minorities, according to
reports, cuts in the state budget for 2013-2014 will
have a negative effect on the incomes of Arab-Israeli families, as national
budgetary priorities focus on areas which do not include the Arab-Israeli
population. According to data from the office of
the Prime Minister, 82 % of the 2010 inter-ministerial plan for the economic
development of the Arab sector, worth EUR 160 million for the 2010-2014 period,
has been implemented.

The Prawer-Begin
plan on the Negev Bedouins, adopted by the government in May, passed its
first Knesset reading in June. The plan is part of the government’s economic
development plan for the Negev, and aims to settle the land claims of the
Bedouin and ‘regulate’ their settlement in the Negev. The plan has been heavily
criticised by opposition parties and NGOs, as it could lead to the relocation
of 30 000-40 000 Bedouin within the next five years. The EU stressed
the need for proper consultation of the communities concerned. Former minister
Begin stepped down in December from his role representing the government’s
position on the plan, recommending that it be revised. Currently the bill is
not being deliberated in the relevant Knesset committee.

On the subject
of women’s rights, three new projects were funded by the EU and began
activities in the areas of labour rights for Arab and Ethiopian Israeli women,
gender budgeting in local authorities and on the gender pay gap. The Equal
Employment Opportunities Commission is involved in the latter project. The 2013
Knesset includes a record number of women MKs, 27 in total, representing
different parties. However, women continued to be underrepresented in key
positions, including on prominent committees such as the Foreign Affairs and
Defence Committee, where only one out of seventeen members was female. In
October 2013, the Minister of Finance appointed a committee charged with
examining the state budget from a gender perspective. The committee will
formulate policy recommendations and guidelines for a gender analysis of the
budgeting process, and will report to the Knesset Committee on the Status of
Women by 1 March 2014, with recommendations expected to be submitted by 1 May
2014.

In the field of children's
rights, in May the State Comptroller presented a report on status-less
children to the Knesset. The report revealed that more than 90 000
children in Israel were undocumented, including children of foreign workers,
refugees and illegal migrants. Some of these children were
held in detention centres, did not receive appropriate welfare care and
attended childcare facilities that fall short of national standards and may be
dangerous. The report questions whether Israel meets the requirements of the
Convention on the Rights of the Child, which requires that detention of
children be used only as a last resort and for the shortest possible time.

A recent
positive development with regard to children was the release of all Eritrean
children, with their parents, from Saharonim detention centre. This comes in addition to government policy, according to criteria
set by the Ministry of Interior, to place unaccompanied minors aged 13-17 in
boarding schools rather than detention.

On the subject
of anti-Semitism, the EEAS participated in the Fourth International
Conference of the Global Forum for Combating Anti-Semitism held in Jerusalem in May. The conference, hosted by the Ministry of Foreign Affairs and the
Ministry of Jerusalem and Diaspora Affairs, convened to discuss ways of
combating the different manifestations of current anti-Semitism and to find
viable models to face this global challenge. The seventh seminar on anti-semitism
was held in Brussels on 16-17 December 2013. This was
the sixth meeting of the Expert Group on the Framework Decision on racism and
xenophobia. In this context, the EU Agency for Fundamental Rights (FRA) presented
its recent survey on discrimination and hate crime against Jews in the EU Member
States. The main discussion focused on online hate speech and anti-Semitism, where
good practice on tackling issues relating to removal and countering were
presented. Finally, human rights training and Holocaust remembrance events for
2014 were also discussed.

There is no
legal discrimination in Israel based on sexual orientation, and lesbian,
gays, bisexual, transsexual and intersex (LGBTI) rights are largely accepted
and protected.

Israel ratified the UN Convention on Rights of Persons with Disabilities
(UN CRPD) in September 2012. Ratification of the related optional Protocol
ensuring an international extra-judiciary right to an effective remedy should
be encouraged. The EU's Disability strategy could serve as an example for an
effective implementation of the UN CRPD.

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

2013 saw
effective efforts, led by US Secretary of State John Kerry, to relaunch direct
peace negotiations between Palestinians and Israelis. Meetings between the
parties took place from July onwards, with the aim of reaching an agreement on
all final status issues within nine months. In its Council Conclusions of July
and December 2013, the EU welcomed the resumption of negotiations, commended
both Prime Minister Netanyahu and President Abbas for their leadership and
expressed its full support for the efforts to achieve a just and lasting
settlement of the Israeli-Palestinian conflict. The EU reiterated its readiness
to contribute substantially to post-conflict arrangements for ensuring the
sustainability of a peace agreement and offered to provide an unprecedented
package of European political, economic and security support to both parties in
the form of a Special Privileged Partnership that the EU would offer to both
Israel and the future state of Palestine in the event of a final peace
agreement.

The EU continued
to engage with Israel in order to address the critical importance of Area C of
the West Bank for the viability of a future Palestinian state. Concrete
results, however, have been limited and increases in demolitions of Palestinian
structures continued. In 2013, the number of structures demolished by the Israeli
authorities in the Jordan Valley doubled, from 172 in 2012 to 390 in 2013. Also
displacement of communities and increased restrictions to access in the Jordan Valley in Area C continued.[1] Humanitarian access and delivery of
assistance have been rendered more difficult and less predictable during the
last year. Humanitarian agencies also reported an increase in
demolitions and confiscations of humanitarian material (tents, water
dispensers, etc.), substantially affecting their ability to provide assistance.

In 2013 the EU
condemned the killing of Israeli citizens, including Israel Defence Forces
(IDF) personnel. It also issued several statements deploring settlement
activity in East Jerusalem and the rest of the West Bank in line with the EU’s
long-standing view that settlements are illegal under international law and
threaten the viability of the two-state solution. In July, the European
Commission published guidelines to ensure that Israeli settlement-based
entities and activities will not benefit from financial support under EU
programmes, in line with existing EU policy and practice.

On Gaza, the EU reaffirmed its support for consolidating the ceasefire of 21 November 2012,
and reiterated its call for an immediate, sustained and unconditional opening
of crossing points for goods and persons to and from Gaza Strip, while fully
recognising Israel’s legitimate security needs. The EU also emphasised its
readiness to engage in projects targeting needs on the ground. Sporadic
rocket-fire from Gaza into southern Israel continued in 2013 and was met by
Israeli airstrikes and a temporary reduction of Gaza’s fishing zone,
subsequently lifted. In September 2013, Israel opened the Kerem Shalom crossing
point for imports of construction materials for the private sector for the
first time since 2007. However, in response to the discovery in October of a
tunnel leading into Israel, this decision was reversed and a broader suspension
of all transfers of construction materials was implemented. In December 2013, Israel enabled the transfer of additional water pumps, gas and fuel, including for Gaza’s power
station, at the request of UN agencies, whilst maintaining the restrictions on
private sector imports. Following the ousting of former Egyptian President
Mohamed Morsi, there was a clampdown on the Gaza tunnels and there were
restrictions on the opening of the Rafah crossing.

In March, during
US President Barack Obama’s visit to Israel, Prime Minister Netanyahu phoned
Prime Minister Recep Tayyip Erdoğan of Turkey to apologise for any Israeli
mistakes that might have led to the loss of life or injury in the Mavi Marmara
incident. The Israeli Prime Minister agreed to compensate the families of the
victims in exchange for halting the court cases against Israeli military officials
involved. However, no agreement has so far been reached. As a result, the
envisaged exchange of ambassadors has not yet taken place.

Israel remained neutral in the internal conflict in Syria, but made it clear it would not allow the possible transfer of advanced
weapons systems from the government to Hezbollah and other rogue groups, and
would retaliate if attacked. Israel opposed Russian plans to deliver S-300
anti-aircraft systems to Syria. Israeli hospitals have admitted a number of
wounded Syrians for treatment.

The Israeli
government continued to warn of Iran’s intentions to develop a
military nuclear programme and called for a cessation of all uranium enrichment
by Iran, the removal of stockpiles of enriched uranium, and the dismantlement
of its enrichment facilities, including stopping work at the heavy-water
reactor in Arak, as prerequisites for any easing of international sanctions
against Iran. Prime Minister Netanyahu, in his UN General Assembly speech in
September, did not rule out military action, if needed, by Israel alone to prevent Iran from obtaining nuclear weapons. However, he
also stated his support for the pursuit of a meaningful
diplomatic solution by the E3+3.

In the field of civil
protection, Israel is participating in the EuroMed Prevention Preparedness
and Response to Natural and Man-Made Disasters (PPRD) South Programme II. An
initial meeting with the Home Front Command in the framework of this programme
was held in Israel in October. Furthermore, a large-scale
drill took place simulating international aid to Israel in case of an
earthquake. It was attended by 13 aid delegations from various countries as
well as delegations from NATO, the International Committee of the Red Cross and
the UN.

3. ECONOMIC
AND SOCIAL REFORM

Macroeconomic
framework[1]

In 2013, economic growth reached an average of 3.4 %
(same as in 2012), reflecting inter
alia a one-off effect from the launch of a natural gas field (Tamar). GDP
expansion was particularly strong in the second quarter (5 %), as a result
of higher public and private consumption, which
preceded June’s pre-announced VAT increase. Against this background and amid an
accommodating monetary policy stance, consumer price inflation increased slightly to an average of 1.8 %
in 2013 from 1.6 % in 2012, remaining within the
official target range of 1%-3 %. The central bank’s main interest rate was reduced twice in 2013 (by
0.75 percentage points in total) to reach a record low of 1 % in September
2013. House price pressures have been kept constant, despite the authorities'
macro-prudential policy measures to address them, partly due to the low
interest rate environment.

In light of the recent natural gas discoveries the shekel appreciated
by almost 5.7 % against the US dollar and by 0.3 % against the euro,
adding to the slowdown of exports, already affected by the still weak global
environment. Exports recorded a negative growth of -2.3% compared to the
previous year, while imports of
goods and services declined by 1%, thereby contributing
to a balanced trade account. The current account surplus improved slightly to
0.6% of GDP compared to 0.3% of GDP in 2012.

On the fiscal front, Israel’s position improved slightly in 2013,
reflecting the continuous fiscal tightening effort and the upward revision of
GDP data in August. As a result, the general government deficit, estimated at 3.5% of GDP (3.9% of GDP in 2012), was lower than the ceiling of 4.33% of GDP budgeted
for 2013. Despite its steady downward trend of the last years, the
government debt remains at relatively high levels (67.5% of GDP at end-2013).

Employment
and social policy

Unemployment in
2013 was estimated at 6.4%, compared to 6.9 % in 2012. Deep socio-economic
and income disparities (with a Gini coefficient of 0.38 for 2012-) remained and
Israel had the highest poverty rate (20.9 %) among OECD countries. The
rapidly growing Arab-Israeli and ultra-Orthodox Jewish population continued to
register the highest rates of unemployment and poverty. The EUR 560 million cut
in child allowances, which was decided in August, may push more families below
the poverty line. House prices in the country increased by 72 % from 2007
to 2012. Housing became a social problem for an increasing number of Israeli
citizens. Some government attempts to enlarge the supply of housing and reduce house
prices did not bear fruit.

As regards social
policy, most of the recommendations of the Trajtenberg Committee were not
implemented or were only partially implemented. In July, the Knesset approved a
law substantially improving employment conditions for sub-contracted workers in
the public administration.

On social
inclusion, the National Insurance Institute noted in a research report that
the period of payment of unemployment benefits was not sufficient for weaker
groups in the labour market, mainly older workers and women.

4. TRADE-RELATED
ISSUES, MARKET AND REGULATORY REFORM

The EU remained Israel’s largest trading partner in 2012.[2] Bilateral trade
flows increased slightly in 2012. Significant progress was made in tackling market access barriers in Israel by means of a more intensive dialogue with the EU. However,
some issues remain unsolved, including sanitary and phyto-sanitary matters and
technical barriers to trade.

In the area of customs, in October Israel signed the regional
Convention on pan-Euro-Mediterranean preferential rules of origin. The number
of companies with Authorised Economic Operator status increased to 40, while 20
other companies have begun the authorisation process. Israel started a pilot Sha’ar Olami (Global Gate) project, aiming to introduce a new
generation of computerised systems, simplify the administrative burden of
international movement of goods, and improve customs enforcement.

On the free movement of goods and technical regulations,
the EU-Israel Agreement on Conformity Assessment and Acceptance of industrial
products (ACAA) came into force in January. 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. Israel continued its adoption of international and
EU standards. The Knesset passed the law on medical devices and regulations to
implement the law were in the process of being approved. Israel adopted the principles of the EU directives on pressure equipment and simple
pressure vessels as an ‘umbrella’ standard for pressure equipment.

The Government’s Cost of Living Cabinet recommended that competition
and cost of living considerations were to be taken into account when
considering the imposition of antidumping duties.

Regarding
sanitary and phyto-sanitary issues, in May, the World Organisation for Animal Health (OIE)
recognised Israel as an OIE member with a negligible Bovine Spongiform
Encephalopathy risk. A twinning project made a key contribution to this
significant achievement.

The business climate in Israel benefited from a high level of
investment protection and ease of trade across borders. Compared to the
previous year, Israel dropped slightly to 35th place[3] (out of 189 economies)
in the ranking for ease of doing business in the World Bank’s ‘Doing Business
2014’ report. Improvements in handling construction permits and registration of
property would improve Israel’s ranking. Israel dropped slightly to 27th place
(out of 148) in the World Economic Forum ‘Global Competitiveness Report
2013-2014’. A developed financial market, an independent judiciary, and a high
level of investor protection and innovation contributed to Israel’s high ranking. According to the report, the most problematic factors for doing
business were inefficient government bureaucracy, issues around access to
finance, tax regulations and restrictive labour regulations.

There were no
substantial regulatory changes in the areas of establishment, company
law, services and financial services.

Other key areas

The agreement on
avoidance of double taxation between Israel and Malta, signed in July 2011, entered into force. Cyprus remains the only EU Member State
with which Israel has not negotiated a similar agreement.

Israel made progress in amending its intellectual property rights
legislation with respect to patent term extension, although the legislative
process has not yet been finalised. Data exclusivity on biological products and
third-party intervention in the patent approval process remain areas of
concern.

In the area of statistics, Israel was one of the first countries to introduce the SNA-2008 methodology for compiling
the national accounts. The change of methodology required a comprehensive
revision of statistical classifications and may result in a temporary lack of
comparability of data in time and across countries.

As regards enterprise
policy, Israel has a well-structured small and medium enterprises
(SMEs) policy framework and it increased convergence with the EU Small Business
Act framework. Israel was more advanced than the EU in areas such as support to
innovative enterprises and access to finance for high-tech and high growth
enterprises. Israel has not yet caught up on regulatory reform and
administrative simplification.

An expert
committee on the enhancement of competition in the banking sector submitted its
recommendations on consumer protection in March. These addressed, among
other issues, the ease of moving accounts from one bank to another, decreasing
costs for SMEs, the possibility of opening a bank account online and enhanced
transparency. The Bank of Israel started taking the necessary actions to
implement these recommendations. In November, Israel’s Consumer Council was
granted partner status in the European Consumers’ Organisation (BEUC). Israel participates actively in the Product Safety Working Party of the OECD which is led
and co-financed by the European Union.

There were no substantial
regulatory changes in public procurement, competition policy or state
aid.

5.
COOPERATION ON JUSTICE, FREEDOM AND SECURITY

On migration
and asylum management, Israel made little progress on improving its
legislative and policy framework, which continued to be out of line with
established international standards. In September, the Israeli Supreme Court of
Justice ruled that the third amendment to the Anti-Infiltration Law was
unconstitutional and contradicted the basic law of human dignity and liberty.
The law allowed for automatic detention of illegal migrants and asylum seekers
for up to three years. In its decision, the Court instructed that within a 90
day period those detained under the amendment must be released and individual
refugee status determination carried out.

A new amendment
to the Anti-Infiltration Law was adopted by the Knesset in December. The new
law provides for a one year detention for newly arrived asylum seekers and the
transfer of those currently in detention to an open detention centre for an
indefinite period. Following the adoption of the new law and the transfer of
the first asylum seekers from the closed centre of Saharonim to the open
facility of Holot, a series of public demonstrations and strikes were organised
by asylum seekers demanding that their rights be recognised. Concerns have been
raised on the extent to which the new open centre meets international detention
standards. There are also reports of increasing difficulties  encountered by
asylum seekers in renewing their visas.

A new petition
against the new law was submitted by a number of NGOs to the Supreme Court in
the beginning of 2014.

The Attorney
General approved the voluntary repatriation of Eritrean and Sudanese migrants.
According to figures from the Ministry of Interior, 2 600 migrants
returned voluntarily to their home countries in 2013, including to Eritrea and Sudan. The UN High Commissioner for Refugees considered that if a migrant had to choose
between indefinite detention and repatriation, such repatriation could not be
deemed to be voluntary. The Attorney General also approved the principle of
deporting such migrants to third countries.

Israel has shown more openness recently with regard to the treatment of foreign
torture victims. Some were released from detention under the
humanitarian release clause of the amendment to the Anti-Infiltration Law.
However, there is still a lack of a sufficient  official policy on foreign torture
victims. Furthermore, concerns persisted regarding potential victims of
foreign torture coming namely from the Sinai still in detention.NGOs estimate
that Israel is currently holding approximately 150 victims of foreign torture
in detention and there are estimations by NGOs of about 7 000 victims of foreign
torture in Israel who do not have access to healthcare. Israel’s provision of a community clinic in Tel Aviv is very basic and provides for very
limited help for serious torture injuries and psychiatric help for foreign torture
victims.

The Ministry of
Health was exploring the possibility of providing some health care in the
framework of the national health system for the 250 000 stateless people
(including asylum-seekers) in Israel. Nevertheless, some 55 000
asylum-seekers present in Israel continued still to be denied access to Israel’s advanced healthcare system.

With regard to migrant
workers, the legislative and policy framework of Israel may lend itself to
abuse and exploitation by employers. Very little
action is taken by the Population, Immigration and Border Authority to enforce
laws against private recruiting companies that breach contracts or exploit
workers.

Caregivers may
extend their visas indefinitely as long as they are hired by the same employer,
but have no access to national health care or welfare services and are insured
privately during their stay. Under no circumstances are they eligible to
receive any type of permanent status. In March, the Supreme Court ruled that
the law applying to working hours does not include foreign caregivers. The
significance of this is that foreign caregivers can be employed around the
clock, with no requirement for employers to provide their workers with overtime
pay, hours of rest, or holidays.

With regard to trafficking
in human beings, Israel continued to be a destination country
for labour and sex exploitation. Israel pursued the implementation of its
policy on addressing human trafficking and the government took strong
preventive measures. Additional government-funded facilities were opened to
care for a rising number of identified victims and identification efforts were
stepped up. However, many trafficking victims remained in detention (mostly
African asylum seekers) due to a lack of trained personnel and limited shelter
capacity.

With regard to
the fight against financial crime the government decided to focus on the
issue of minimising tax evasion and money laundering by increasing the use of
credit card transactions. A draft Counter-Terrorism Bill was introduced
in June. The bill, if passed, would introduce a broad definition of ‘terrorism’
enshrining the right of the State to carry out administrative arrests without
trial and, in certain cases, to take action on the basis of suspicion of
terrorism (without trial or solid guarantees of due process). The bill has
extended the scope of the concept of terrorism in a way that may, for the first
time, include ‘price tag’ acts (i.e. acts of vandalism and violence, usually
against Palestinians or Israeli security forces) carried out by Jewish
perpetrators.

Israel is not a major narcotics producing or trafficking country, but has
a significant domestic market for illegal drugs. Use of cannabis and synthetic
cannabinoids, however, is on the rise. The Israeli Anti-Drug Authority (IADA) regularly
adds new synthetic drugs to Israel’s Dangerous Drugs Ordinance, which provides
the legislative basis for drug definition, penalties, and related enforcement
authorities.

In July, the ‘Kiosk
Drug’ law passed its final reading, expanding the police’s authority
to confiscate materials suspected as hazardous to public health or safety. The
law was introduced following increasing numbers of cases of young people using
dangerous substances sold in kiosks. In April, a law on alcohol use was passed,
authorising police to confiscate alcoholic drinks from people in public places.
This law also prohibits the sale of alcohol at night.

A Memorandum of
Understanding between the European Monitoring Centre for Drug and Drugs
Addiction (EMCDDA) and IADA was signed on 4 February 2014 in Jerusalem. A representative
from IADA attended the 2nd Reitox week in May. Among relevant
sources of expertise of interest, one can mention the New Psychotropic
Substances (NPS), for which an Israeli expert participated in the International
Forum on NPS organised by the EMCDDA and by NIDA. Israel appointed a national correspondent to the
EMCDDA.

With regard to
the judicial cooperation in criminal matters, negotiations are still
ongoing between Eurojust and Israel for an agreement, and more clarification is
required on Israel's data protection rules. Israel has not signed the CoE
Convention 108, nor the Additional Protocol to Convention No. 108 regarding
supervisory authorities and transborder data flows (ETS No. 181).

Concerning
judicial cooperation in civil matters, Israel has not yet ratified the Hague
Convention of 1996 on Jurisdiction, Applicable Law, Recognition, Enforcement
and Co-operation in respect of Parental Responsibility and Measures for the Protection
of Children. Israel participated in the 1st training seminar (Component II
Resolution of Cross‐border Family Conflicts) “Resolution of cross‐border family conflicts: international, EU and national
legislation”) in the framework of the EuroMed
Justice III Project, which took take place in Rome in October.

6. TRANSPORT,
ENERGY, ENVIRONMENT, THE INFORMATION SOCIETY, RESEARCH AND DEVELOPMENT

The EU-Israel
Comprehensive Aviation Agreement was signed in June 2013. The EU-Israel
air transport market will be opened gradually over the next five years, so that
by 2018 there will be no restrictions on the number of flights between Israel and the EU. The first Joint Committee on this agreement took place on 12 December
2013 in Israel. At regional level, Israel takes an active part in the Euro-Mediterranean
transport dialogue and technical assistance programmes. In October 2013, the EU
and Israel signed an Administrative Agreement on a Global
Navigation Satellite System (GNSS) which provides a
framework for cooperation on matters of common interest in the area of global
satellite navigation.

As regards energy, a public
steering committee on reform of the electricity sector was established. There
was some concern that the committee’s recommendations on the structure of the
Public Utilities Authority (Electricity) could limit the latter’s independence.
The EU will support the
strengthening of the organisational, technical and administrative capacities of
the oil and gas department of the Ministry of Energy and Water Resources, in
order to update relevant oil and gas regulation and legislation including
offshore safety.

The offshore liquefied
natural gas buoy began operations at the end of January. In April, the new
government approved the legislation necessary to establish a sovereign wealth
fund for natural gas revenues. In March, natural gas began flowing from the
Tamar field and by September, 50 % of Israel’s electricity was being
produced from natural gas. In June, the cabinet approved the revised membership
of the inter-ministerial committee to examine and provide
recommendations for Israel’s natural gas economy. The
government decided to reserve 540 bcm of natural gas for the domestic market
for the next 29 years. In October the High Court rejected a petition which
would also have required Knesset approval for the export of natural gas. This paves the way for the export of up to 360 bcm (about 40 %)
of Israel’s natural gas reserves, in accordance with the June 23 cabinet
decision.

The country’s
first two independent power producer stations were connected to the national
grid. In June, the Ashelim tender for the thermosolar plant, which will produce
121 MW of electricity, was awarded to an Israeli-led consortium with a Spanish
partner.

In July, the
first meeting of the ad hoc EU-Israeli Energy Dialogue took place in Brussels. In August, Israel, Greece and Cyprus signed a Memorandum
of Understanding on energy cooperation.

In the framework
of the Memorandum of Understanding between the JRC and the Israel Ministry of
Energy and Water Resources, signed on 9 July 2012,a high-level dialogue has
been established, to be followed by interactions at technical level.

Regarding climate
change, budget cuts resulted in a three-year suspension of the national
greenhouse gas mitigation plan. Since the plan provided cross-sector financial
incentives, this also affected programmes implemented by the Ministry of Energy
and Water Resources. The newly launched regional technical assistance project
for climate action, Clima South, deployed a fact-finding mission to Israel. To encourage Israel to engage further in international reductions of greenhouse gas
emissions, regular EU meetings with Israel on climate change policy were
planned. In July, Israeli experts participated in a study visit on national
greenhouse gas inventory reports, and Clima South also looked at engaging with Israel through developing a Climate Change Information Centre.

As regards environment,
Israel acceded to the Kiev Protocol on Polluant Release and Transfer Registers
(PRTRs) in January, and its PRTR data is now publicly available on the Ministry
of Energy and Water Resources’ website.

In May, the
Ministry published for public discussion a draft guide to prevent the misleading
of consumers about environmentally friendly products (‘green-washing’). In
July, the Knesset amended the 1984 law on the maintenance of cleanliness to
significantly increase funding for basic waste treatment in disadvantaged
communities. In June, Israel’s national air monitoring system received
accreditation for testing, in accordance with ISO requirements. Israel’s air pollution data was made publicly available on the Ministry’s website, and in August,
the Knesset approved the adoption of Israel’s national programme for the reduction
and prevention of air pollution (whose budget for the next five years is EUR 20
million).

In December Israel, Jordan and Palestine signed a
water-sharing agreement to build a pipeline to carry brine from a desalination
plant at the Red Sea to the Dead Sea, while providing drinking water to the
region.

Israel was one of the first countries to begin supplying data to the
European Environment Agency under the EU’s shared environmental information system
regional project. Israel continued to be active in European Neighbourhood
Partnership Instrument (ENPI) regional environment programmes,
through participation in steering committee meetings, training events and study
visits. Israeli authorities and civil society representatives met the team
leaders of the new ENPI programmes — Clima South, ‘Cleaner energy saving
Mediterranean cities’ and ‘Switch Med’ — to discuss implementation for Israel.

Israel continued to participate in the technical assistance EU-funded
project on the Integrated Maritime Policy in the Mediterranean (IMP-MED). The
number of Israeli applicants participating in the cross-border cooperation Mediterranean sea basin programme increased from 170 in the first call for proposals, to
341 in the third call. The number of Israeli organisations involved in projects
financed by this programme stands at 18, managing about EUR 8.4 million, with
11 of these dealing with environmental risk management, innovation and local
economic development.

On information
society, the law on telecom network neutrality was adopted in 2013.
According to the law, internet and fixed-line telecom providers are forbidden
from taking any action to limit or block traffic on their networks,
applications used by their customers, or any telecom equipment customers may connect
to their networks (e.g., devices, modems, routers). The
EU supported the setting-up of a computer system, enabling the Ministry of
Communications to implement recommendations on data collection, and facilitate
interactions between the telecommunications regulator and operators. Israel participated in an EU-South Mediterranean seminar on
e-signatures, as well as in the Southern Mediterranean Dialogue on
E-Commnications and the Information Society.

Regarding audio-visual
policy, a bill to establish a single regulation authority for all
commercial TV and radio broadcasting passed its first reading at the Knesset.
In September, reforms were announced to broaden competition in the multi-channel
television broadcasting market. With technical assistance from the EU, training
was provided for Arab film-makers, in order to expand their knowledge of
European markets, financing of co-productions, and marketing of films in Europe. Training was also provided to the Israeli Producers’ Association and major Israeli
film funders on tax credits, tax shelters, banking rules and other tools to
help the Israeli industry and increase audiovisual production in Israel.

Regarding research
and innovation, an agreement on Israeli participation in the Horizon 2020 programme
was reached in December and is expected to be signed in early April.

In November 2013,
the EU delegation to Israel and 15 Member States organised the third annual
EU-Israel Innovation Seminar. This focused on technological incubators and
brought together incubator managers, graduates and specialists to exchange
experience and best practice, and to lay the foundation for future cooperation.

As of 9 January
2014, Israel had signed 1 536 Seventh Framework
Programme agreements involving 1861 Israeli participations
amounting to a total of EUR 782 million EU contribution.
Israel’s largest areas of participation were in cutting edge research,
where the European Research Council gave grants which represent 47% of funds
received by Israel, and in information and communications technology which
represents 15.6 % of funds received.

Regarding sustainable
development, an inter-ministerial multi-stakeholder steering committee was
established to identify key issues for Israel’s contribution to the RIO+20 process.

7.
PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH

In the field of vocational
education and training (VET), Israel expressed interest in working on
qualifications and quality assurance, building on an already strong
relationship in these areas with the EU, in particular around the European
Training Foundation (ETF). Israeli ministries and the key VET actors actively
participated in the regional project ‘Governance for Employability in the Mediterranean — GEMM’.

In the area of higher
education, Israel showed increased interest in participating in Tempus, making
this the most successful year for Israel since it joined Tempus in 2008. In
2013, seven projects involving Israeli higher education institutions were
selected, among which three coordinated by Israel. Israel’s interest in the Erasmus
Mundus programme also grew. 112 student and university staff received
scholarships to study at a European higher education institution under this
programme. In addition, 11 masters students were awarded scholarships to take
part in Erasmus Mundus joint programmes of excellence. Since 2007, 502 Israeli
researchers have been funded by Marie Curie Actions and 498 Israeli
organisations have benefited from this programme.

Young Israelis
and Israeli youth organisations continued to benefit from the Euromed Youth programme.
A decision was taken to extend the operational phase of this programme until
2016 and to top up Israel’s Euromed Youth Programme with an extra EUR 1
million. 19 projects were funded and successfully implemented. Israeli youth
organisations and young people also took part in the Youth in Action
programme, wich supported 88 projects, reaching 370 beneficiaries.

In the area of culture,
Israel has not yet ratified 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.
A consultation workshop was organised, involving
stakeholders from the cultural sector, as part of the consultation process for
the Preparatory Action on ‘Culture in EU External Relations’.

Six new projects
began under the EU Partnership for Peace programme. Of particular note
are two projects dealing with Israeli-Palestinian health and medical
cooperation, including training of medical personnel and providing medical care
to Palestinian children. A call for proposals for the EU Partnership for Peace
programme concluded in 2013, with 11 local, cross-border and regional projects
selected, for a total of approximately EUR 5 million.

Israel continued
to strengthen its cooperation with the EU on public health issues,
including through an administrative arrangement between the European Centre for
Disease Prevention and Control and its Israeli counterpart, and through Israel’s
participation in the EU-funded ‘Episouth Plus’ project which aims to enhance
health security in the Mediterranean region and South-East Europe.

Policy-makers
from Israel attended a multi-country workshop on the EU acquis on
prevention and control of communicable diseases, as well as participating in
the EU-supported Mediterranean programme for intervention epidemiology training
project (MediPIET, which supports training infrastructure and a regional
network of competent field epidemiologists in order to manage cross-border
health threats).

8.         ISRAEL’S RESPONSIBILITIES IN THE OCCUPIED TERRITORIES

While protecting
the security of Israel and its citizens Israel has responsibilities as an
occupying power in the occupied territories, notably, with regard to the
proportionate use of force, human rights and international law. Settlements are
illegal under international law, constitute an obstacle to peace and threaten
to make the two-state solution impossible.

Thirty-nine
Palestinians and six Israelis (including three civilians) were killed in
conflict-related incidents in 2013.

The number of
Palestinian fatalities in clashes with Israeli forces in the West Bank tripled
from nine, in 2012, to twenty-seven in 2013. More than 3 700 Palestinians
were injured by Israeli forces in the West Bank over the course of the year,
compared to 3 000 in 2012. The number of Palestinian casualties by Israeli
forces in Gaza saw a significant decrease in 2013 with 11 fatalities, compared
to 263 in 2012 (including operation ‘Pillar of Defence’), and a total of 81
injuries in 2013, compared to 1 485 in 2012, making 2013 the year with the
lowest level of violence in Gaza and southern Israel since the beginning of the
Second Intifada in September 2000 (all figures provided by the UN Office of the
Coordinator for Humanitarian Affairs — OCHA). Two IDF soldiers, one
off-duty, were killed in the West Bank in September, one IDF soldier was killed
by a Palestinian in Israel in November, and one Israeli worker was killed by a
Palestinian sniper while working on the Gaza fence in December. Israeli security
services arrested 14 alleged members of an Islamic Jihad group from Bethlehem suspected of involvement in the bombing of an Israeli bus in Bat Yam in
December. In 2013, 63 rockets and 11 mortar
shells launchings from Gaza towards Israel (in 39 attacks) were reported.

Violence
against settlers led to 50 incidents of Israeli
casualties or property damage. For the first time since March 2011, a settler
was killed by a Palestinian in April. Another settler was killed in October
(figures provided by the OCHA).

Israeli
authorities took some measures to step up their interventions against settler
violence and price-tag attacks. In June 2013, the Israeli government
expanded legal tools against ‘price tag’ attacks, qualifying them as carried
out by ‘illegal associations’ but stopping short of designating them as
terrorist organisations. The special police unit tasked with foiling attacks by
Jewish extremists carried out various arrests. An Israeli court gave a life
sentence to a settler who had murdered two Palestinians in 1997. However settler
violence leading to Palestinian casualties and damage to Palestinian property
continued, with 386 incidents, compared to 359 in 2012.  Most of the cases
filed with the Israeli police relating to these issues continued to be closed
without indictment.

As of November
2013, there were 4 785 Palestinian prisoners and detainees in Israeli
jails. While numbers have declined slightly since 2012, Israel continued to make extensive use of administrative detention without trial of
Palestinians, with 143 reported in November alone. Several administrative detainees pursued individual hunger strikes.
A civilian Inspector of Detainee Complaints was appointed, a position which was
previously held by a member of the Israeli Security Agency.

Settlement
construction and expansion continued, including
deep into the West Bank. Construction started in the West Bank, totalling 2159
units between January and September 2013 (according to the Israeli Central
Bureau of Statistics), increased by 132 % compared to the same period in
2012. This does not include construction started in outposts. Although this is
illegal under Israeli law, according to NGO reports there were 180 of these in
the first half of 2013. After a period of restraint in the first half of 2013,
particularly in East Jerusalem, the Israeli government advanced plans for more
than 10 000 units and published tenders for 3 472 housing units in
settlements in 2013, although 1 129 of these were renewed publications of
previous failed tenders. Some smaller outposts were demolished by the Israeli
army in the reporting period, and the Israeli High Court of Justice ordered
further demolitions. However, a document submitted to the High Court in May
outlined the state’s intention to retroactively ‘legalise’ four isolated West Bank outposts.

Concerning freedom
of religion, Palestinians do not enjoy free access to Muslim and Christian
Holy Sites in the Old City of Jerusalem. For example, access for Palestinian
Christians remained restricted during Orthodox Easter, which coincided with the
Jewish Passover holiday when Israel typically restricts movement and access,
citing security concerns. Nevertheless, the Israeli authorities do take
specific measures to facilitate such access, in particular during religious
holidays, which can also extend to preventing access to the Temple Mount/Haram
al Sharif for non-Muslims, to avoid tensions with worshippers. The Israeli
authorities seek to ensure that, in line with understandings on the status quo,
non-Muslim worship does not take place there, a policy contested by an
increasing number of religious and nationalist Jewish Israelis. During Ramadan
(July-August) a special entry regime, including various exemptions for certain
groups from the requirement for entry permits and an overall increase in entry
permits for others, allowed more than one million people to enter Israel and access Jerusalem, the highest number since the Second Intifada, according to the Israeli
Civil Administration.

In August and
September 2013, Israel eased some restrictions on movement and access in
the West Bank and Gaza. Work and stay permits for Palestinians in Israel were increased and age limits reduced. Opening hours for the border crossing to Jordan were extended. For the first time since 2007, Israel allowed the entry of limited
amounts of construction materials into Gaza, including for private projects,
but suspended all such imports again in October after the discovery of a
concrete tunnel running from the Gaza into Israel. The import of construction
material for UN projects was resumed in December. According to the World Health
Organisation, the number of applications for permits to leave Gaza for medical
treatment through the Erez crossing (to the West Bank, Israel or Jordan) was 47 % higher in 2013 than in 2012. Over 90 % of such applications were
approved on average. Israeli and Palestinian Finance Ministries resumed talks
on collecting Palestinian tax and clearance revenues.

As regards children's
rights, at the end of August there were 180 Palestinian children in Israeli
military detention, up by 9.7 % compared with 2012. Following an UNICEF report,
which concluded that ‘the ill-treatment of children who come in contact with
the military detention system appears to be widespread, systematic and
institutionalised’, some positive steps have been taken in this respect. These
include a pilot (reported by UNICEF in October) to issue summons for children
instead of conducting night arrests, a military order (number 1 711)
reducing the length of time that a Palestinian child can be detained before
their first meeting with a military court judge, and the holding of remand
hearings for children separately from adults.

Palestinian economic
and social rights remain hampered by Israeli restrictions on freedom of
movement. In the West Bank, the separation barrier continued to impact on
livelihoods. Access to agricultural land across the barrier is channeled
through 74 ‘agricultural gates’, the majority of which (52) only open
during the olive harvest. Israeli trade regulations continued to hinder imports
into Israel of Palestinian products. The economic and physical isolation of the
Gaza Strip remains a serious concern. While the average number of trucks
entering Gaza was somewhat higher than in 2012, according to the OCHA, only
five truckloads of goods per day (on average) left Gaza, and exports from Gaza
to Israel and the West Bank remain prohibited. Gaza fishermen faced fishing
restrictions of six nautical miles from the coast. The economic and
humanitarian situation in Gaza deteriorated further, as a result of Israeli
restrictions on imports and of the closure of tunnels linking Egypt and Gaza.

Palestinian property
rights continued to be under particular strain. According to the OCHA, during
2013, 662 Palestinian residential and non-residential structures were
demolished by the Israeli authorities in Area C and East Jerusalem, displacing
1 100 people, a 10 % and 24 % increase respectively
compared to 2012 (when 604 structures were demolished and 886 people were displaced).
A marked increase in demolitions and displacement also took place in East Jerusalem, with more than 300 people displaced, more than the combined total of
the two previous years.

The Israeli
Supreme Court held various hearings on the applicability to East Jerusalem of
the 1950 law on absentee property, but did not issue its final ruling in 2013. A
decision to retroactively annul the use of the law in these circumstances by
the court could affect thousands of Palestinians residing in the West Bank with
property claims in East Jerusalem, who had seen their property confiscated by
the state’s custodian of absentee property after 1967 on the basis of this law.

[1] UN
OCHA figures

http://reliefweb.int/report/occupied-palestinian-territory/local-eu-statement-demolitions-0

http://reliefweb.int/report/occupied-palestinian-territory/25-organizations-call-end-demolitions-palestinian-homes-and

[1] Figures are from the national statistical office, the central bank,
the IMF or Commission Staff estimates, as indicated in the Statistical Annex.
When other data sources are used these are then indicated.

[2] Data for 2013 was not available at the time of writing.

[3]
Comparison is made with the ‘Doing Business 2013’ ranking, which was adjusted
for changes in methodology and any revision of data due to corrections. For
more information, see http://www.doingbusiness.org.

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