Israel PM tells Kerry EU harming peace talks push

(JERUSALEM) - Israeli Prime Minister Benjamin Netanyahu warned Washington on Wednesday that EU moves to end dealings with Jewish settlements were harming its peace talks drive, an Israeli official said.

In a telephone call with Secretary of State John Kerry, who is in neighbouring Jordan on his latest bid to revive direct negotiations between Israel and the Palestinians, Netanyahu warned that the EU was "damaging efforts to restart the talks".

The European Union is to publish new guidelines for its 28 member states on Friday that will block all funding of, or dealings with, Jewish settlements in the occupied West Bank, including annexed east Jerusalem.

Netanyahu convened an emergency meeting on Tuesday after the EU approved the guidelines, which will affect all grants, prizes and funding from the bloc from 2014 onwards.

"We shall not accept any external dictates on our borders," Netanyahu's office quoted him as telling his justice and trade ministers and deputy foreign minister.

"That is an issue that will be decided only in direct negotiations between the sides."