BICOM

The European Union’s (EU) outgoing Middle East envoy, Andreas Reinicke said yesterday that failure to agree a peace accord between Israel and the Palestinian Authority (PA) would likely lead to increased European support for labelling West Bank goods and a reduction in EU aid for the PA.

Although no significant breakthrough has been made in peace negotiations since they resumed in July, Reinicke said he believes the two sides “are starting to bridge the first gaps” and a peace agreement is possible. However, he also warned that if talks do collapse then European support for the separate labelling of West Bank goods, allowing consumers to boycott them on the basis of their origin, would likely increase. Reinicke said that just two EU member states supported such a move when he began his tenure in 2012, but that 14 states are now in favour.

He also said that a breakdown in talks would probably lead to a review of the level of EU aid directed towards the PA. Reinicke commented that it would inevitably lead to donor countries questioning, “How long will we be able to pay for Palestinian institution-building if there is no chance that these institutions will evolve into a state.”

Earlier this week, EU foreign ministers announced that there would be a significant upgrade in political, economic, cultural and scientific cooperation with both Israel and a future Palestinian state in the event of a peace agreement. Both would be granted a Special Privileged Partnership with the EU, the closest possible ties with a non-member state, should a peace deal be signed.

Meanwhile, during a meeting with China’s Foreign Minister Wang Yi in Jerusalem yesterday, Israel’s Foreign Minister Avigdor Lieberman underscored the commitment to peace, commenting “Israel is serious about reaching an agreement and I expect the Palestinians to contribute as well to the process.” President Shimon Peres also described peace as Israel’s “greatest desire” while welcoming Wang Yi to his official residence.