Israel has defied EU appeals by approving a major new colony in the West Bank and attacking Gaza City.
The "E1" settlement, of some 3,400 new homes, was formally approved by the defence ministry on Wednesday (20 August).
It is to be built in a strategic area designed to block Palestinian statehood by cutting the West Bank in two and separating it from East Jerusalem.
"With E1, we are delivering finally on what has been promised for years. The Palestinian state is being erased from the table, not with slogans but with action," Israeli finance minister Bezalel Smotrich said on Wednesday.
"Every housing unit is another nail in the coffin of this dangerous idea," he added, while repeating calls for annexation of the West Bank.
Israeli prime minister Benjamin Netanyahu said: "We will do everything to ... prevent the establishment of a Palestinian state".
The E1 decision coincided with the start of Israel's assault on Gaza City.
The EU had previously appealed to Netanyahu against both moves, but has not yet spoken out on Wednesday's developments.
A German government spokesman said on Wednesday E1 was illegal and "hinders a negotiated two-state solution".
French president Emmanuel Macron said: "The military offensive in Gaza that Israel is preparing can only lead to disaster for both peoples and risks plunging the entire region into a cycle of permanent war".
Meanwhile, Israel has also reneged on an EU deal to let in food to Gaza, with starvation now adding to the daily death toll.
But Europe as a bloc has been unable to agree any sanctions due to vetoes by staunch Israeli allies, such as the Czech Republic, Germany, and Hungary.
And this has left individual countries or NGOs to take action instead.
France has led the way by preparing to recognise Palestinian statehood at the UN in September, prompting Netanyahu to write an open letter this week accusing Macron of stoking antisemitism.
But Marcon fired back on Tuesday, saying Netanyahu's comments were "erroneous, abject, and will not go unanswered.
The Italian Soccer Coaches' Association on Wednesday also called for Israel to be expelled from the World Cup, ahead of Israel-Italy qualifiers in the next two months.
This year, we turn 25 and are looking for 2,500 new supporting members to take their stake in EU democracy. A functioning EU relies on a well-informed public – you.
Andrew Rettman is EUobserver's foreign editor, writing about foreign and security issues since 2005. He is Polish, but grew up in the UK, and lives in Brussels. He has also written for The Guardian, The Times of London, and Intelligence Online.
Andrew Rettman is EUobserver's foreign editor, writing about foreign and security issues since 2005. He is Polish, but grew up in the UK, and lives in Brussels. He has also written for The Guardian, The Times of London, and Intelligence Online.