The European Union on Thursday warned that Israel's decision to advance the controversial E1 settlement plan constitutes a breach of international law and poses a serious threat to the viability of a two-state solution.

In a statement, the EU's High Representative said that if implemented, the construction of settlements in the area would permanently sever the geographic and territorial continuity between occupied East Jerusalem and the West Bank, as well as cut off the northern West Bank from its south.

The EU reiterated its call on Israel to halt all settlement activities, including demolitions, forced transfers, evictions and the confiscation of homes.

The statement noted that such policies, along with ongoing settler violence and military operations, are fuelling an already tense situation on the ground and undermining prospects for peace.

It urged the Israeli government to abandon the plan, warning of its far-reaching consequences and stressing the need to take steps to safeguard the viability of the two-state solution.

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