Minister of Defense Moshe Ya'alon, speaking at a tour of a factory in Acre on Tuesday said that the EU considers the West Bank "occupied territory" but Israel will continue its policies there. Ya'alon was responding to a report Tuesday that the EU has published a binding directive to all of its member states forbidding any funding cooperation, awarding of scholarships, research funds or prizes to anyone residing in the Jewish settlements in the West Bank and east Jerusalem.