Israel has frozen co-operation with the European Union on work in the Palestinian territories in retaliation for an EU directive banning funding or grants for bodies with links to Israeli settlements.
The move, authorised by the defence minister, Moshe Ya'alon, affects all projects requiring permits from the Civil Administration, which governs Area C, the 60% of the West Bank under full Israeli control; access of EU diplomats and representatives to Area C and Gaza; and joint meetings.
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