Israel's blocking of EU projects in the West Bank in response to the EU's directive not to provide grants, gifts, or prizes to Israeli entities beyond the green line is meaningless in light of Prime Minister Netanyahu's intention to release Palestinian murderers to jumpstart negotiations that, in effect, undermine Jewish presence in the West Bank/Judea & Samaria more than any EU boycott ever could.
The EU has proven its prejudice against Jews living in the West Bank (and the Golan Heights and East Jerusalem), but these Arab prisoners have murdered Jewish children in cold blood. This tit-for-tate retaliation against the EU is undermined by Israel's very willingness to appease people who have have done more than boycott Jews, but have killed them. The action to punish the EU seems more like a small appeasement of pro-Israel factions as Israel plans a larger surrender to anti-Settler forces.
According the Reuters article reprinted in the Jewish Journal, an Israeli official said: "From our standpoint we cannot just ignore [the EU sanction] or treat spitting in our face as though it is rain."
And what does he call releasing murderers of innocent Jews? That's a deluge of spit.