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      EU: Only Part of Modi'in is Outside Israel

      European Union softens stand, says it only sees three zip codes as outside "Green Line."
      By Gil Ronen
      First Publish: 8/15/2012, 7:54 PM

      Modiin at night
      Modiin at night
      Flash 90

      The European Union said Wednesday that only a  small part of the city of Modiin (Modiin-Maccabim-Reut ) is located "outside of Israel," in its view.

      The list of communities that are supposedly outside Israel "refers only to three zip codes -- 71799, 71728 and 71724 – which refer to a small part of Modiin-Maccabim-Reut, which is beyond the Green Line," the EU statement read. It added that the EU "repeatedly calls on Israel and the Palestinian Authority to renew the negotiations between them on all subjects in the permanent arrangement, including borders; the EU will recognize any change in the pre-1967 borders that is agreed upon by the sides."

      The Foreign Ministry repudiated the EU's decisions. "For anyone who deals in reality, there is not the slightest doubt that the Modi’in, Maccabim and Reut localities are an integral part of Israel," the ministry said in a statement.

      "The EU ignores reality when it extends the domain of conflict to places and issues that do not belong there. As for the other locations mentioned in the EU list, the European approach, though not new, is not acceptable in Israel's view, and it is being addressed through ongoing diplomatic engagement."

      "Remarkably, by the unilateral publication of the locations list on the internet, the EU has unacceptably cut off a negotiating process regarding this very issue. This action, conducted 'ex abrupto', has therefore been the object of an official protest lodged by the Mission of Israel in Brussels to the European Union."

      The EU decision was made as part of an initiative to decide which Israeli products will benefit from tax breaks. Israeli and EU officials reached understanding years ago according to which items produced in areas settled by Israel after 1967 will not enjoy these tax breaks. According to the understanding, Israeli exporters label their products with the place of production, and EU officials decide whether the location is considered “territories” or “Israel.”