ABC Online
By Middle East correspondent
Updated November 03, 2011 06:58:03 Britain, France, the US and the European Union have condemned Israel's decision to speed up housing construction for Jewish settlers in the occupied West Bank.
The Israeli move came after the UN granted Palestinians full membership of its cultural organisation UNESCO.
A day after the vote, the Israeli cabinet brought in a series of punitive measures, deciding to accelerate the construction of thousands of homes in a major settlement in the West Bank.
It has also resolved to withhold tax revenues from the Palestinian Authority.
European states have urged Israel to reverse its decision, with the EU saying settlements are illegal under international law and an obstacle to peace.
The French foreign ministry says such moves are contrary to Israel's legal obligations and international undertakings, while British foreign secretary William Hague says the Israeli announcement is illegal and provocative.
Israeli prime minister Benjamin Netanyahu was defiant, telling parliamentarians that Israel has a right to build in Jerusalem.
But he insisted the acceleration is not a punishment for UNESCO's decision.
Israeli government spokesman Mark Regev says Israel's actions are justified.
"The Palestinians have no-one but themselves to blame for the current impasse in the peace talks," he said.
"It stems directly from their refusal to negotiate peace from their boycotting the negotiations and from their decision to attack Israel in (the) international forum."
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