Source: Aljazeera
Al Jazeera English - Europe - EU backs Jerusalem as joint capitalOf course the Israeli government has denounced this proposal, calling it a «"dangerous" threat to peace efforts, and saying it would undermine the EU's role as a Middle East peace mediator» I can't see how it can be a threat to peace efforts, quiet the contrary, nor can I see how it undermines the EU's role as a Middle East "peace mediator"..it seems to me that Israeli government doesn't (seriously) want peace at all. Perhaps the most suitable solution for the Israeli government it would be the extinction of Palestine or its full submission to Israel.
From my point of view Israel represents "the" threat to the peace process, and it uses threat on the EU to achieve its goal.
This proposal is a step towards and agreement. I don't know (i can't know it) if dividing Jerusalem is a good choice, but a common capital, if agreed, is a solution that would (at least in theory) please both Palestinians and Israelis.