Economics

EU to Penalize Israel for Settlements

Entities living in disputed areas will not be able to receive grants, funding or scholarships

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The European Union will take a tougher stance against Israel beginning Friday, enforcing new guidelines that direct its 28 member nations not to award any funding, grants, scholarships or prizes to any entities in Jewish settlements in the Golan Heights, West Bank and East Jerusalem, according to a communique released Tuesday.

The new rules replace the bloc's current more informal approach to the settlements with a firm, binding policy, and the move may signal an intention to push Israel harder to reach a peace deal with the Palestinians.