Israel's biggest trading partner says that it agrees with President Obama that a Palestinian State should be based on 1967 borders with agreed land swaps, with East Jerusalem as its capital. The EU is in a very good position to cause Israel severe economic difficulties if it doesn't comply with the wishes of the international community. Netanyahu and his ilk have not presented any peace initiatives and will leave Israel diplomatically isolated due to their intransigence. Israel deserves better, and contrary to the anti-semitic accusations leveled in some of these comments, the EU knows that and wll apply whatever pressure is necessary to save Israel from its own short-sightedness.
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from the article: European Parliament: East Jerusalem should be Palestinian capital