Malta yesterday called on Israel to abandon plans to construct 3,000 new homes in the occupied Palestinian territories.

Palestinians cannot continue to build their state when land is progressively eroded

Israel authorised the housing units in the West Bank and East Jerusalem on Friday, one day after the UN voted to upgrade the Palestinian status to non-member observer state.

Malta was one of 138 countries that voted in favour of giving Palestine enhanced status.

“It is clear that the Palestinians cannot continue to build their state when land is progressively eroded. In the interest of preserving the viability of the two-state solution, Malta calls on Israel to abandon the new construction plans,” Foreign Minister Francis Zammit Dimech said yesterday.

The UN has warned the homes would be “an almost fatal blow” to peace hopes.

Some are planned in the E1 area, between Jerusalem and the West Bank settlement of Maaleh Adumim.

Critics say development in this area will isolate Jerusalem from the West Bank, threatening the viability of a contiguous Palestinian state.

Malta is especially troubled by any actions that diminish the prospects for East Jerusalem becoming the capital of a Palestinian state, Dr Zammit Dimech said.

“Settlements are illegal under international law, constitute an obstacle to peace and threaten to make a two-state solution impossible,” the Foreign Minister said, adding this position was shared by the entire EU.

The UK and France both summoned Israeli ambassadors on Monday in protest at Israel’s latest decision.

Britain is promising a “strong reaction” if Israel goes ahead with the settlement plans, though a spokesman for British Prime Minister David Cameron yesterday denied speculation that the UK was planning to withdraw its ambassador from Israel.