Jerusalem has, in the aftermath of the Palestinian move, approved the constructionof 3,000 new homes in areas east of Jerusalem and transferred more than $100 million in Palestinian taxes to pay down Palestinian debt owed to Israeli energy companies. European countries, most prominently Britain and France, have blasted the move but are now backing away from threats to recall their ambassadors in protest. Analysts are speculating that France’s yes vote and Britain’s abstention on the Palestinian upgrade resolution have sharply limited the leverage Paris and London have over Jerusalem.

[Photo: Kippi70 / Wiki Commons]