Renewed Israeli-Palestinian talks planned
The latest EU move comes amid two diplomatic developments last week: its own intention to ban funding to Israeli entities in the West Bank and East Jerusalem, and serious diplomatic wrangling over peace in the Middle East.
Kerry is working to bring Israelis and Palestinians together for peace talks.
EU foreign policy chief Catherine Ashton noted that the European Union published a document reiterating "the long-held position that bilateral agreements with Israel do not cover the territory that came under Israel's administration in June 1967."
The move prompted criticism out of Israel and from some U.S. lawmakers, who called it "counterproductive."
She said the "specific provisions" of the guidelines covering Israel-EU "funding instruments" won't be implemented before January 1.
"This is meant to clarify the EU's position in advance of negotiations of agreements with Israel during the forthcoming financial perspective commencing in 2014. In no way will this prejudge the outcome of peace negotiations between Israelis and Palestinians. It has been the EU's long-held position that it will recognize changes made to the borders once agreed," Ashton said.
She said the European Union is "deeply committed" to peace negotiations.
Hezbollah has been a staunch opponent of Israel. The Jewish state and Hezbollah also fought a war in 2006 after the military group kidnapped and killed Israeli soldiers.