The Oslo Accords are a series of agreements between Israel and the Palestinians, made in the Nineties, which divided the West Bank into Areas A, B and C.
Area C was placed under Israeli control, while Areas A and B were Palestinian. The agreements were ratified by the international community, including the EU, and intended as a step towards the two-state solution.
More than 1,000 EU-funded Palestinian homes, as well as roads and other infrastructure, have been erected in the Israeli Area C of the West Bank, without permits from Israel.
But the EU says that international humanitarian legislation, coupled with their belief that Area C will end up in Palestinian hands, allows them to proceed with construction.
Regavim, a right-wing Israeli NGO, has brought a number of law suits against the EU, accusing it of undermining international agreements. On each occasion, the EU avoided court by claiming diplomatic immunity, MailOnline has learnt.
The NGO has questioned whether diplomatic immunity should be applied in this case, as Article 41 of the Vienna Convention states that in return for immunity, diplomats must not 'interfere in the internal affairs of that State'.
A Brussels-based EU spokesperson said: 'Any attempt by local courts to serve or deliver judicial acts to EU Delegations in third countries... may violate the EU's immunity from jurisdiction.'
In recent months, Israel has demolished some of the unauthorised EU buildings, leading to a game of cat-and-mouse and a further waste of aid money. Local witnesses say that earlier this month, the EU constructed a rudimentary school on a Friday, and Israel bulldozed it on Saturday.
In another example of wastage, the EU funded the development of an unauthorised road that bisects Area C from east to west. It was originally a dirt path, but last year the EU widened it with heavy equipment.
Israeli authorities halted the construction in October, before asphalt was laid, and work has been sporadic since. EU-funded drainage and irrigation continues in the area, preparing the ground for future Palestinian settlement.
'It is the most outrageous waste of our aid money at a time when many countries are looking to make difficult savings at home,' Andrew Percy MP said.
Speaking to the foreign media, Benjamin Netanyahu, Israel's Prime Minister, said: 'When we take down these illegal constructions, we are then again condemned, so it's a Catch-22... This is a clear attempt to create political realities... I think we need to re-set our relationship with the EU.'
