Last week, Israeli authorities demolished around 20 Palestinian commercial buildings in the Shuafat Refugee camp in East Jerusalem, only weeks after the Jerusalem municipality advanced plans for close to 800 new housing units in the Israeli settlements of Ramat Shlomo and Ramot in East Jerusalem. In addition, settlers in the East Jerusalem neighbourhood of Silwan are continuing proceedings that could lead to the eviction of up to 700 Palestinians living in the area. The European Union is strongly opposed to Israel's settlement policy, illegal under international law, and actions taken in that context, such as forced transfers, evictions and demolitions. The EU expects the Israeli authorities to reconsider and reverse these decisions. The policy of settlement construction and expansion in East Jerusalem continues to undermine the possibility of a viable two-state solution, with Jerusalem as the future capital of both states, which is the only realistic way to achieve a just and lasting peace.