The EU foreign ministers said continued building in East Jerusalem and the West Bank represented a roadblock - and not a roadmap - to international peace efforts.

Over the weekend, Israeli Prime Minister Benjamin Netanyahu announced that Israel would not restrict construction in East Jerusalem.

Speaking on behalf of his colleagues, Spanish Foreign Minister Miguel Moratinos, whose country holds the rotating EU presidency, said "we asked for a total freeze of settlement activities and we will pursue this policy." Moratinos said the EU's position was made clear to the Israeli Foreign Minister Avigdor Lieberman at the Brussels meeting.

Moratinos' Finnish counterpart, Alexander Stubb, called the 'green light' for more settlements in East Jerusalem "completely unacceptable."

Luxembourg's foreign minister Jean Asselborn said the EU was "very disappointed by the position of the Israeli government. I think I can say very clearly that Jerusalem is not Tel Aviv."

EU has a role to play

On a more conciliatory note, former British prime minister Tony Blair, who is now the EU's special Middle East representative, was hopeful that, despite the latest setbacks, both the Israelis and the Palestinians wanted the peace process to continue. "The more we can do to build confidence, the better," he said.

EU foreign affairs chief Catherine Ashton, who made her first official trip to the Middle East last week, stressed that "there has to be a recognition that the talks have to get moving."

The talks being discussed are so-called "proximity talks," which would have Israeli and Palestinian representatives in the same building with US mediators, but not meeting face-to-face.

The foreign ministers also stressed the need for the EU to continue building up Palestinian government capabilities.

"I think there is an important European role in speaking up politically, but also in supporting the institutions of a Palestinian state," said British Foreign Secretary David Miliband.

"After all, it is European effort that is supporting the Palestinian economy; it is European effort that is supporting the development of the Palestinian security forces," Miliband said.

New construction undermines peace process, says Clinton

The European sentiments were echoed by US Secretary of State Hillary Clinton during a speech in Washington before the American Israel Public Affairs Committee, a pro-Israeli lobby group.

"New construction in East Jerusalem and the West Bank undermines mutual trust and endangers the proximity talks that are the first step toward full negotiations," Clinton said.

But despite US anger over new settlements, Clinton told the AIPAC audience that the United States remained committed to Israel's security.

"Our commitment to Israel's security and Israel's future is rock solid, unwavering, enduring and forever," Clinton said to thunderous applause.

gb/dpa/AFP/AP/Reuters
Editor: Ben Knight