| "This represents a further highly detrimental step that 
				undermines prospects for a two-state solution and calls into 
				question Israel's commitment to a peaceful negotiated settlement 
				with the Palestinians," the European Union's External Action 
				Service said in a statement.
 "We stress that the future development of relations between the 
				EU and Israel will depend on the latter's engagement towards a 
				lasting peace based on a two-state solution," the EEAS said.
 
 (Reporting by Robin Emmott; editing by Barbara Lewis)
 
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