EU calls on Israel top reverse settlement decision

(BRUSSELS) - European Union foreign affairs chief Catherine Ashton on Wednesday urged Israel to reverse a decision to build new homes in occupied east Jerusalem that she warned could throttle peace talks.

The European Union "condemns the decision by the government of Israel to build new housing units in east Jerusalem," said a statement from the English baroness. "Israel should reverse this decision."

Ashton said the move, announced just as US Vice President Joe Biden was in Israel seeking to breathe new life into Middle East peace talks, and which has infuriated the Palestinians, could kill off hopes of ever agreeing on future borders.

Stressing that the settlements "are illegal under international law", the position agreed by the EU's 27 national governments, as set out by Ashton, comes weeks from a visit to Israel for which she had been given permission to visit Gaza.

She said the settlements "undermine current efforts for restarting peace negotiations, constitute an obstacle to peace and threaten to make a two-state solution impossible.

"The EU calls upon the Israeli authorities to fulfil all their commitments and obligations vis-a-vis the peace process and to refrain from unilateral decisions and actions that may jeopardise the final status negotiations," she underlined.

The EU position, which expanded on morning remarks Ashton made to lawmakers at the European parliament in Strasbourg, France, follow on from stern US and UN criticism.

Biden told Palestinian leaders on Wednesday that Washington will hold accountable any side that hurts peace prospects, pointedly citing Israel's settlement expansion plans.

"I promise you, Mr President," he said, turning to Palestinian leader Mahmud Abbas, "the United States will also stand with those who take the risks that peace requires."

Putting his full weight behind indirect talks the Palestinians reluctantly agreed to hold with Israel after a 14-month hiatus in peace negotiations, Biden said the Washington administration "is fully committed to the Palestinian people and to achieving a Palestinian state which is viable and contiguous".

UN chief Ban Ki-moon stressed that "settlements are illegal under international law" while France called the decision "ill-timed" and Britain's Foreign Secretary David Miliband said the decision "will give strength to those who argue that Israel is not serious about peace".

Even Israel's defence ministry blasted the "unwarranted announcement which affects peace negotiations with the Palestinians -- negotiations of the highest interest for Israel."

Israel's interior ministry on Tuesday approved the construction of the new housing units in Ramat Shlomo, a Jewish settlement in the mainly Arab eastern sector of Jerusalem, occupied by Israel since 1967, that the Palestinians want as the capital of their promised state.

Israel said on Monday that it has authorised a visit to the Hamas-run Gaza Strip enclave through its territory by Ban and Ashton, who has said she planned to go to Israel on March 17.

In December, Israel barred a delegation of members of the European Parliament from travelling to Gaza after initially authorising the visit.

Irish Foreign Minister Micheal Martin managed to get in via Egypt late last month, becoming the first European foreign minister to do so for more than a year.