Israel states there is no such things as "West Jerusalem" or "East Jerusalem". Israel, after it illegally annexed East Jerusalem, recognizes to itself only one "Jerusalem", united and undivided, eternally Israel's, for ever and ever. This "Jerusalem" is the city which Israel claims as its capital. Jerusalem in that condition, in the viewpoint of Israel, of course is not recognized by the EU or any other entity or country as the capital of Israel (except for Israel itself). And no, not even West Jerusalem is recognized as Israel's capital. Why? Because Israel makes it clear that no distinction will be made between West and East Jerusalem. So, in that condition, we cannot recognize West Jerusalem as Israel's capital until Israel recognizes that their "Jerusalem" is confined to West Jerusalem. Then, the world will recognize that Jerusalem as Israel's capital.
Australian police arrest 5 over shooting 'linked to terrorism' (Reuters)
from the article: Livni to Sweden: Ditch EU plan on dividing Jerusalem