The EU is to adopt guidelines later this week prohibiting EU member states from funding projects in Jewish settlements in occupied Palestinian territories. Maja Kocijancic, a spokesperson for EU High Representative, Catherine Ashton, told a news conference in Brussels Tuesday that EU Foreign Affairs Council last December decided to limit the application of agreements with Israel to the territory of Israel that is recognized by the EU and not to those Palestinian territories occupied by Israel in 1967. She noted that the European Commission in June adopted a notice containing guidelines on the eligibility of Israeli entities and its activities in the territories occupied by Israel in 1967 \"for grants, prizes and financial instruments\" funded by the EU from 2014 onwards. These guidelines were prepared in order to implement the European Commission\'s commitment to make a clear distinction in EU legislation between the state of Israel and occupied territories, stressed the spokesperson. \"Israeli settlements are illegal under international law,\" she underlined and added that the EU does not recognize of Israeli sovereignty over occupied territories. This is to make clear to Israel in future participation in EU funded programmes in the new financial framework from 2014 onwards, said Kocijancic. She clarified that Israeli participation in these EU programmes \"are not put under question.\" These guidelines will allow the EU and Israel to hold discussions on bilateral agreements which are currently under preparation such as research and innovation programme called Horizon 2020, she noted. The new EU guidelines are expected to be officially published on Friday.