German Chancellor Angela Merkel met Israeli Prime Minister Benjamin Netanyahu yesterday at the start of a two-day visit that will include a joint German-Israeli Cabinet meeting.

The talks, which started straight after she landed, focused on the crucial need to advance Israeli-Palestinian peace negotiations in light of the unrest shaking Egypt, a source close to the German government said.

Mrs Merkel told Mr Netanyahu that what was happening in Egypt “made it even more necessary for Israel to be more constructive in the discussions on the peace process,” the source said, adding that both parties agreed that “concrete steps should be taken within the coming six months”

Direct talks between Israel and the Palestinians broke down late last year in a row over Jewish settlement building.

“From the Chancellor’s point of view, the current phase of stagnation is extremely unsatisfactory,” the source said. Mrs Merkel was expected to push for fresh talks to focus on borders and security. She was also to clearly reiterate Germany’s opposition to Israel’s construction of settlements in the occupied West Bank and east Jerusalem.

“According to the Chancellor, the settlement policy is still an obstacle to the establishment of the two-state solution as called for by the international community,” the source said.

Immediately after their talks, Mrs Merkel and Mr Netanyahu hosted a joint meeting of the German and Israeli Cabinets at Mr Netanyahu’s office, which was to be followed by dinner at a Jerusalem hotel.