According the report, approximately 190,000 Jewish settlers, who constitute 40 percent of the total settler population, are presently living in East Jerusalem. Since the end of Annapolis conference in 2007, where settlement activity was regarded as a major impediment to the peace process, 3,000 new housing units for Jewish settlers have been approved for construction in East Jerusalem. An additional 2,500 are being reviewed. The report elaborates on "written evidence of compliance, and monetary help, of individual ministries to settler activities in the Old City."

As indicated by several news stories of house evictions and demolitions of houses in Sheikh Jarrah, Silwan, Abu Dis in early 2009, settlement expansion are rapidly underway amidst these Palestinian communities in East Jerusalem.

WEST BANK

According the EU report, approximately 280,000 Jewish settlers presently live in the occupied West Bank. Peace Now reports illustrate how Israeli plans to facilitate new settlement units in the West Bank would dramatically change the demography of the territory. The organization has collected evidence that the Israeli housing ministry has constructed a majority of settlements in the West Bank on private Palestinian land and not state land, as often claimed by the settlers and Israel. According to this report, private Palestinian land accounts for 32 percent of the land used for settlements.

The Ariel bloc, Karne Shomron bloc, Givat Zeev bloc, Gush Etzion bloc, and Modiin Ilit bloc are the most prominent clusters of settlements that continue to expand. Settlement blocs are essentially clusters of settlements in close proximity to each other. The ministry of housing plans indicate that 58,000 new units are waiting to be approved for 2009 while 15,000 have already been approved.

SETTLEMENT FREEZE

According to B’Tselem, between 1967 and the end of 2007, Israel expropriated land for the construction of 121 settlements in the West Bank. The ministry of housing classified them as "communities." Twelve settlements were built on land annexed by Israel in 1967 as part of Jerusalem, which remains occupied territory. An additional 100 settlements illegal under Israeli law, referred to as outposts, currently exist.

The Annapolis conference focused in part on a freeze of settlements in order to make an equitable two-state solution possible for the Palestinians. Such a freeze would involve the Israeli government halting construction of new settlements and preventing expansion of existing ones. It would also mean halt in expropriating additional Palestinian land for building bypass roads connecting settlers to Jerusalem.

The Obama administration initially supported these moves as a precursor to bilateral negotiations, and the Palestinian leadership is currently insisting that Israeli implement a settlement freeze before it engages in talks.