EU discourages investment in settlements

JERUSALEM -- European Union officials say diplomats are urging their governments to discourage direct investments that support settlement construction, infrastructure and services in Jewish settlements in the West Bank and East Jerusalem -- territories Palestinians claim for their future state.

The recommendations are part of a nonbinding internal report for 22 European governments.

The diplomats also recommend European countries step up efforts to label settlement-made products sold in Europe.

The EU says Israeli settlements are illegal.

Parts of the report were published in the Israeli daily Haaretz. EU officials confirmed the report. They spoke on condition of anonymity because they were discussing a confidential internal document.