PLO official Hanan Ashrawi on Tuesday welcomed a directive by the European Union which will ban project funding to Israeli settlements and require future contracts to include a clause stating that settlements are not part of the Israeli state. \"We welcome this significant move that calls for all EU projects to be conducted within pre-1967 lines and not in East Jerusalem, the West Bank or Golan Heights,\" Ashrawi said. \"This includes the prohibition of funding, cooperation and research funding, among other things, to any individual or institution in the illegal settlements.\" The EU has moved from statements and condemnation \"to effective policy decisions and concrete steps which constitute a qualitative shift that will have a positive impact on the chances of peace,\" Ashrawi said. \"The Israeli occupation must be held to account, and Israel must comply with international and humanitarian law and the requirements for justice and peace.\"