 The general position of the EU is that a Palestinian state should be based on the 1967 borders with land swaps, Jerusalem should be divided and become the capital of both states, and a negotiated settlement be found for the Palestinian refugee issue, although member states have sometimes been divided on these issues.However, all EU states universally consider Israeli settlements illegal under international law.The EU has insisted that it will not recognize any changes to the 1967 borders other than those agreed between the parties.