Key European leaders demand Israel halt West Bank settlement project

France, Italy, Britain and Germany on Thursday piled on mounting international condemnation of a major settlement project in the occupied West Bank, after Israeli authorities opened bidding for more than 1,200 homes in the area.

The E1 plan was green-lit by Israel last year and would further separate east Jerusalem, occupied and annexed by Israel and predominantly inhabited by Palestinians, from the West Bank.

"At a time of grave instability in the West Bank with unprecedented levels of violence by settlers against civilians, and serious restrictions on the Palestinian economy, this decision is even more concerning," the joint statement from Paris, Rome, Berlin and London said.

"We urge the Government of Israel to retract these plans immediately and end its expansion of settlements in the West Bank," it added, warning businesses against bidding for the construction tenders at risk of "involving themselves in serious breaches of international law".

The UN secretary general has said the E1 plan posed an "existential threat" to a contiguous Palestinian state.

Belgian Foreign Minister Maxime Prevot called the tenders "unacceptable" on Thursday, saying the project "would seriously undermine the viability of the two-State solution".

His condemnation echoed a statement by Britain's top diplomat Ed Miliband on Wednesday demanding an end to the project and settlement expansion in the West Bank, with London summoning Israel's charge d'affaires.