European Union officials are expected to call for Jerusalem to be divided so it can be the capital of both Israel and a Palestinian state. Haaretz got its hands on a draft document prepared by Sweden, which currently holds the EU presidency, that seems to imply Europe would recognize a unilateral declaration of statehood by the Palestinians.
Israel is trying to prevent the whole thing from going forward, but
sources close to the negotiations "believe it is virtually inevitable,"
reports Haaretz. The draft document says that "genuine peace"
won't be achieved unless there's a way "to resolve the status of
Jerusalem as capital of two states." The document also states
the European Union won't recognize any changes to the 1967 borders
unless the Palestinian Authority also approves them. Israeli
officials say Sweden is pushing an "anti-Israel" agenda that will
ultimately make Europe "irrelevant" in the peace process.
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