URGENT ¥¥¥ Israel's Jerusalem settler policy blocks two states: EU

Israel's settlement construction in annexed east Jerusalem is part of a strategy aimed at preventing the Holy City from becoming the capital of two states, an internal EU report found on Wednesday.

In its Jerusalem Report for 2012, the European Union flagged construction in Har Homa, Gilo and Givat HaMatos as "most significant and problematic", describing it as "part of a political strategy aiming at making it impossible for Jerusalem to become the capital of two states."