Poor Israeli PR has seen the EU enforce new rules on science funding, but EU states compensated Israel with a UN gift.
Under the funding deal, the EU and Israel will shortly sign a memorandum of understanding (MoU) on Israel's participation in the Union's "Horizon 2020" research programme.
The grants will be governed by new EU guidelines, which say Israeli firms and institutions cannot spend a cent of EU money on activity in occupied Palestinian land.
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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.