Public and political debate in Israel often focuses on the French Consulate in Jerusalem. Yet the reality is far broader. In east Jerusalem, several foreign consulates – including those of the United Kingdom, Spain, Italy, Sweden, and Turkey – operate as independent diplomatic missions. In practice, many of them bypass the State of Israel and function as logistical and political hubs for the Palestinian Authority.
Their presence has created what can only be described as a “Palestinian diplomatic district” in east Jerusalem – not neutral institutions but active centers working to undermine Israeli sovereignty and to promote the idea of Jerusalem as the future capital of a Palestinian state.
Instead of serving their own nationals, many consulates provide Palestinians with visas, scholarships, and direct financial support.
These consulates fund cultural, educational, and infrastructure initiatives that, while presented as “civil,” in reality establish parallel institutions to Israeli governance.
A 'contested city'
By avoiding recognition of Jerusalem as Israel’s capital, these consulates advance policies that frame the city as “Palestinian,” thereby legitimizing non-recognition of Israel.
This reality goes far beyond technical diplomacy. It reinforces the dangerous narrative that Jerusalem is a “contested city,” not Israel’s united capital. By sustaining a parallel diplomatic presence in east Jerusalem, foreign governments lend tangible legitimacy to Palestinian claims, not just in theory, but in daily practice, on the ground.
Israel must draw a clear line: There can be no “Palestinian diplomatic neighborhood” in the heart of its capital. As a sovereign state, Israel has the right to demand that all foreign consulates in Jerusalem be subordinated to their embassies in Tel Aviv, as is standard practice worldwide, and that any diplomatic activity in Jerusalem must take place under full recognition of Israeli sovereignty.
The Jewish state must send an international message: Israel will not tolerate two competing diplomatic systems in its capital city.
An economic hub
At the same time, the moment has come to highlight Jerusalem’s growing economic strength. The city is not only a religious and historical center but also a hub of innovation in hi-tech, healthcare, academia, tourism, and culture.
Many of the countries that hesitate to recognize Israeli sovereignty in Jerusalem for political reasons may realize that they have a direct economic interest in Israel’s continued control of the city. Jerusalem’s economic vitality ensures stability, infrastructure development, and growth opportunities, precisely the conditions foreign governments and investors seek when engaging in long-term cooperation.
The French Consulate is only the tip of the iceberg. Collectively, the foreign consulates in east Jerusalem have created a de facto “Palestinian district” that systematically challenges Israeli sovereignty.
Israel now has a dual opportunity: to end the illegitimate practice of independent consular activity and to showcase Jerusalem as an international economic powerhouse. Together, these measures send a clear message: Not only will Israel never relinquish sovereignty over Jerusalem, but other nations also have a vested interest in supporting it.
The writer is chairman of the Jerusalem Center for Applied Policy.