Dutch ambassador to Israel Caspar Veldkamp offered a significant incentive to Israel during an interview broadcast by Israel Army Radio Tuesday morning.  He indicated that a peace agreement with the Palestinians would encourage the European Union to support Israel in a number of ways that until now have been avoided.

If a deal is reached, “the European Union is likely to support the appointment of Israel to the UN security Council, and foreign embassies would move from Tel Aviv to Jerusalem,” he said.  Although a peace agreement would benefit both sides, Veldkamp suggested Israel has more to gain.

“World opinion will favor the Palestinians as long as there is no progress in the negotiations,” he said. “When there is no progress, people feel the need to take sides. In this case, there is an almost automatic tendency to identify with the underdog, which is how they see the Palestinians.”

Israel and the Netherlands are generally on friendly terms, but several Dutch companies made headlines in recent months for their decisions to sever ties with their Israeli counterparts.  Notably, Dutch water company Vitens ended its relationship with Israeli company Mekorot, which does business in Judea and Samaria.  About a month later, PGGM, one of the world’s largest pension management funds, divested from five Israeli banks over their involvement in funding settlement construction.  The latter case was met with protests from Dutch Christian activists.  At the time, a statement released quoted Veldkamp as saying PGGM’s decision “is unacceptable and relies on false pretense.”