Nevertheless, the symbolism is indeed important, as the EU is clearly defining every inch over the Green Line to be Arab until negotiations make it otherwise:
The EU does not recognise Israel’s sovereignty over any of the territories referred to in point 2 and does not consider them to be part of Israel’s territory, irrespective of their legal status under domestic Israeli law. The EU has made it clear that it will not recognise any changes to pre-1967 borders, other than those agreed by the parties to the Middle East Peace Process (MEPP).
One problematic aspect of this document is that it refers to the 1949 armistice lines as "borders," when they were nothing of the sort. UNSC 242 and its drafters made it clear that Israel must have "secure and recognized boundaries," as opposed to the situation before 1967. For the EU to explicitly refer to those lines as "borders" cannot be an oversight - it is a deliberate attempt to pre-judge the outcome of negotiations and is a huge gift to the intransigent Mahmoud Abbas. This might not be new, but that doesn't make it right - it only proves that the incorrect wording is deliberate, which should trouble anyone who wants to deal with the EU.
The idea of treating the anomalous 19 years of Jerusalem's artificial division and illegal occupation by Jordan of part of the city - where the holy sites were Judenrein - as somehow the "status quo" and an ideal to be strived for, while the successive 45 years of Jerusalem's unity is anomalous, is beyond absurd.
It means that the EU subscribes to this:
Israel is partially at fault for not having a clear, consistent, legal-based message to world diplomats on issues like Jerusalem, Judea and Samaria.
Beyond the legalities, though, is the reality that the poster above means to show: the world is targeting Jews, and only Jews. See this great post by Yaacov Lozowick on Beit Safafa for examples of Arab Israelis who moved to the other side of the Green Line and are never considered "settlers".
Israel is doing a poor job at explaining its side of the story, and EU documents like this - even if only an incremental step - are the result. Nothing Israel is doing points to moving the discourse in any other direction. So things like the verbiage "borders," instead of causing a firestorm, are roundly believed to be accurate.
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