"Future agreements between the European Union and Israel must include the explicit exclusion of Jewish settlements in the West Bank or East Jerusalem, according to a new EU directive described by an Israeli official as an "earthquake".
"The EU guidelines, adopted on 30 June, will prohibit the issuing of grants, funding, prizes or scholarships unless a settlement exclusion clause is included. Israeli institutions and bodies situated across the pre-1967 Green Line will be automatically ineligible.
"The Israeli government will be required to state in any future agreements with the EU that settlements in the West Bank and East Jerusalem are outside the state of Israel.
"The directive, part of the 2014-20 financial framework, covers all areas of co-operation between the EU and Israel, including economics, science, culture, sports and academia. It does not cover trade, such as produce and goods originating in settlements."