"Israel's recent decision to advance plans for some 770 housing units in the settlement of Gilo, built on occupied Palestinian land in East Jerusalem, undermines the viability of a two-state solution. It contributes to the establishment of a ring of Israeli settlements around the city, thus further cutting East Jerusalem off from the southern West Bank," the EEAS statement said.
The European Union urges Israel to reverse this decision and to cease its settlement activity, the statement added.
Israel’s announcement came weeks after a report of the Middle East Quartet calling on the country to abandon its settlement policy.
On June 3, Paris hosted an international conference aimed at resuming the stalled Israeli-Palestinian negotiations. No representatives of either Israel or Palestine were present at the event.
The Palestinians seek diplomatic recognition for their independent state on the territories of the West Bank, including East Jerusalem, which is partially occupied by Israel, and the Gaza Strip. Israel has been building settlements on the occupied territories despite objection from the United Nations.