Israeli settlements

"The presidency of the European Union is dismayed at the announcement of the government of Israel to build nearly 700 apartments in occupied East Jerusalem," said a statement from Sweden, which currently holds the rotating EU presidency.

Earlier on Monday, Israel had announced plans to build almost 700 new apartments in occupied East Jerusalem. The new homes will be located in areas which Israel captured in the 1967 Middle East war.

"Settlements on occupied land are illegal under international law," the EU statement said. "The Presidency of the European Union thus urges the government of Israel to reconsider these plans."

The new settlement plans have already prompted strong protests from the Palestinian side. President Mahmoud Abbas has refused to resume peace talks without a complete Israeli halt to settlement construction in East Jerusalem.

The Palestinians want East Jerusalem as the capital of their future state while Israel claims both East and West Jerusalem as part of its "eternal, indivisible" capital.

Palestinians call on US for help

Chief Palestinian negotiator Saeb Erekat warned the development "further sabotaged international efforts to resume permanent status negotiations."

Erekat called on the US to clarify its position on Israel's obligation to freeze all settlement construction as agreed under the 2003 Road Map peace plan.

Later on Monday, White House spokesman Robert Gibbs said the United States "opposes new Israeli construction in East Jerusalem."

Around 500,000 Israelis live in settlements in East Jerusalem and the West Bank deemed illegal under international law.

Israel's capture and annexation of the territory during the Middle East War 1967 was never recognized by the international community.

The continued expansion of settlements - especially in East Jerusalem - is seen as one of the major obstacles to peace talks between Israelis and Palestinians.

ai/dpa/AFPE
Editor: Susan Houlton