The European Union says Israel must not play "divide and rule" with the 27-member bloc over a recent resolution calling for Jerusalem to become the shared capital of Israel and a future Palestinian state following negotiations.

Swedish Foreign Minister Carl Bildt, whose country holds the EU's rotating presidency, said Thursday the bloc was united and would not "remain shy" on so crucial an issue.

Bildt was apparently referring to Foreign Minister Avigdor Lieberman's statement, according to which Israel "appreciates the European states which promoted the (resolution's) final version and prevented the radicalization of the Palestinian positions and possible damage to the prospect of relaunching the negotiations.

"I'm pleased that the foreign ministers didn’t make any rash, one-sided decisions," he said.

A senior source in the Prime Minister's Office said that "Israel is profoundly disappointed with Sweden's term as EU president. The Swedes have been biased since the Aftonbladet report accusing the IDF of harvesting Palestinian organs. Not one Swedish delegate visited Israel during the term. Sweden acted like it was one of the participants of the Fatah convention."

Addressing the Iranian crisis, Bildt said imposing fresh sanctions against the Islamic Republic could be "one of the instruments" used in the efforts to curb its nuclear aspirations, but added "we must be very cautious when it comes to implementing them."