European Union leaders called on Israel to immediately reverse plans to expand illegal settlements in the occupied West Bank and warned businesses against bidding for construction contracts, citing serious legal, economic and reputational risks, according to a statement issued Friday following a two-day summit in Brussels.
In conclusions adopted at the Oct. 15-16 European Council meeting, EU leaders condemned Israel's continued expansion of illegal settlements and escalating violence by Israeli settlers against Palestinian civilians in the occupied West Bank.
The leaders specifically demanded that Israel abandon plans for new settlement construction in the E1 area, a controversial development project that threatens to further fragment Palestinian territory and undermine prospects for a viable Palestinian state.
The European Council also urged companies and financial institutions to refrain from participating in construction projects linked to illegal Israeli settlements, warning that involvement could expose them to serious consequences under international law.
"It reiterates that businesses should not bid for construction contracts for E1 or other settlement developments," the declaration said.
The statement highlighted the legal, economic and reputational consequences facing businesses and financial institutions involved in illegal settlement construction, including the risk of serious violations of international law.
EU leaders also expressed grave concern over the deteriorating humanitarian situation in Gaza and the occupied West Bank, reiterating their opposition to Israeli policies that undermine Palestinian rights and regional stability.
Separately, the European Council criticized U.S. sanctions targeting the International Criminal Court (ICC), urging Washington to reverse the measures.
The leaders reaffirmed the bloc's commitment to defending the court's independence and ensuring its continued access to financial services and other resources necessary for its operations.
The EU said it remained prepared to take steps to protect the ICC from measures that could obstruct its work.
Israeli settlements in the occupied West Bank, including East Jerusalem, are illegal under international law. The International Court of Justice reaffirmed this position in its July 2024 advisory opinion, which found Israel's continued presence in the occupied Palestinian territories unlawful.