And if the EU puts these "guidelines" into effect, they'll damage said relations further. And it won't be just Israel that's harmed. The side effect if these plans has already scuttled a proposed joint EU-PA project to deal with sewage in the PA territories, only because an Israeli company would be participating over the Green Line. Do you really think the Palestinian interest is enhanced by not dealing with sewage, just as long as Israel is spited?
UN chief condemns Palestinian toddler killing, urges calm (Reuters)