The U.S. condemned Tuesday Israel's plan to build 1,100 new housing units in Jerusalem's contested Gilo neighborhood, which lies beyond the Green Line.
"We are deeply disappointed by this morning's announcement by the government of Israel approving the construction of 1,100 housing units in East Jerusalem," State Department spokeswoman Victoria Nuland said.
"We consider this counterproductive to our efforts to resume direct negotiations between the parties," Nuland said. "And we have long urged both parties to avoid actions which could undermine trust, including in Jerusalem, and will continue to work with the parties to try to resume direct negotiations."
The European Union's foreign policy chief Catherine Ashton also expressed disappointment with Israel's new plan to build homes in Gilo, saying they "should be reversed" since it undermines peace negotiations with the Palestinians.
Ashton told the EU parliament that she heard "with deep regret" that Israeli plans to build homes beyond the Green Line were continuing.
TVNL Comment: Netanyahu knows the US will continue to give billions to Israel.... more than to any other country, and he couldn't care less about what the US says. Members of the US Congress threatened to cut of funding to Abbas because of the statehood bid. Where are there threats now? Just asking....