EU slams settlement expansion as illegal

"The presidency recalls that settlement activities, house demolitions and evictions in East Jerusalem are illegal under international law," a statement from the presidency said.

"Such activities also prejudge the outcome of final status negotiations and threaten the viability of a two-state solution."

Israel announced earlier this week it plans to build the new homes in the settlement of Gilo, south of Jerusalem on land mainly owned by Palestinians in Bethlehem and its surrounding villages.

Crucially, the EU’s executive also “recalls that the European Union has never recognized the annexation of East Jerusalem in 1967 nor the subsequent 1980 basic law,” in which Israel claimed Jerusalem, including the occupied eastern half, as its “undivided” capital.

The EU presidency added, “The actions taken by the Israeli Government contravene repeated calls by the international community, including the Quartet, and run counter to the creation of an atmosphere conducive to achieving a viable and credible solution to the conflict between Israelis and Palestinians.

“If there is to be genuine peace, a way must be found to resolve the status of Jerusalem as the future capital of two states,” the statement continues.