A new European Union (EU) report says that Jerusalem is at a “boiling point” and recommends sanctions against Israel over the “polarization” in the capital.

The report, obtained by the British Guardian on Friday, says that Jerusalem has reached a dangerous boiling point of “polarization and violence” not seen since the end of the second intifada in 2005.

The report calls for tougher European sanctions against Israel over its “continued settlement construction in the city”, which it claims is exacerbating recent conflict.

The leaked report describes the emergence of a “vicious cycle of violence … increasingly threatening the viability of the two-state solution”, which it says has been stoked by the continuation of “systematic” settlement building by Israel in “sensitive areas” of Jerusalem, according to the Guardian.

Among the recommendations in the report are:

Potential new restrictions against “known violent settlers and those calling for acts of violence as regards immigration regulations in EU member states”.

• Further coordinated steps to ensure consumers in the EU are able to exercise their right to informed choice in respect of settlement products in line with existing EU rules.
• New efforts to raise awareness among European businesses about the risks of working with settlements, and the advancement of voluntary guidelines for tourism operators to prevent support for settlement business.
• Well-informed European sources told the Guardian that the report reflects a strong desire from European governments for additional measures against Israel over its “continued settlement-building”.

The leaked report comes after Israeli officials said in February that EU member states were readying themselves to enforce sanctions on Israel and will strike hours after the March 17 elections.

The EU has a long history of pressuring Israel over “illegal settlement activity” in Jewish-owned areas of Judea and Samaria, which was declared legal by international law in the 2012 Levy Report.

While it criticizes Israel, an explosive expose by watchdog groups recently revealed that the EU is funding illegal settlement in Judea and Samaria – by assisting the Palestinian Authority (PA) and pro-Palestinian groups in illegally grabbing land from Israel’s area, Area C. 

Overall, the bloc has threatened Israel multiple times to further its agenda in the Middle East, dangling unprecedented aid packages to both Jerusalem and Ramallah if a two-state solution is implemented.

However, it has denied threatening Israel – or promoting the Boycott, Divestment, and Sanctions movement – on multiple occasions. 

(Arutz Sheva’s North American desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Arutz Sheva articles, however, is Israeli time.)