East Jerusalem
In the Palestine Liberation Organization (PLO)'s Palestinian Declaration of Independence of 1988, Jerusalem is stated to be the capital of the State of Palestine. In 2000, the Palestinian Authority passed a law proclaiming Jerusalem as its capital, and in October 2002, this law was approved by chairman Yasser Arafat. Since that time Israel has shut down all offices and NGO organisations connected to the PLO in East Jerusalem, saying that the Oslo Accords do not permit the Palestinian National Authority to operate in Jerusalem. The Organisation of Islamic Cooperation (OIC) recognised East Jerusalem as capital of the State of Palestine on 13 December 2017.
Israel–European Union relations
The EU has been more critical of Israel and more supportive of the Palestinians than the US. 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. Israel's settlement program has, thus, led to tensions. The most difficult of these issues, however, is Jerusalem. Israel has insisted that the city will remain its undivided capital, and is fiercely opposed to its re-division. Israel does not regard Jewish neighborhoods in East Jerusalem as settlements, while the EU does. East Jerusalem has been a "de facto" part of Israel following Israel's unilateral annexation of the area, while the EU, along with the rest of the international community, regards it as occupied territory subject to negotiations. The EU has frequently criticized Jewish construction in East Jerusalem.