A confidential EU report accuses the Israeli government of using settlement expansion, house demolitions, discriminatory housing policies and the West Bank barrier as a way of "actively pursuing the illegal annexation" of East Jerusalem.
The document says Israel has accelerated its plans for East Jerusalem, and is undermining the Palestinian Authority's credibility and weakening support for peace talks. "Israel's actions in and around Jerusalem constitute one of the most acute challenges to Israeli-Palestinian peace-making," says the document, EU Heads of Mission Report on East Jerusalem. It acknowledges Israel's legitimate security concerns in Jerusalem, but adds: "Many of its current illegal actions in and around the city have limited security justifications."
"Israeli 'facts on the ground' - including new settlements, construction of the barrier, discriminatory housing policies, house demolitions, restrictive permit regime and continued closure of Palestinian institutions - increase Jewish Israeli presence in East Jerusalem, weaken the Palestinian community in the city, impede Palestinian urban development and separate East Jerusalem from the rest of the West Bank," the report says. The Guardian
Also see this from 2007: Israeli legislature votes to seize East Jerusalem and Protest camp against home demolitions in Jerusalem on International Middle East Media Center