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The EU expressed concern Tuesday about Israel's decision to allow hundreds of new homes to be built in settlements in the occupied West Bank, saying the move is an obstacle to peace.

"The European Union expresses its serious concern over Israel’s approval of additional settlement construction," said a statement issued by Sweden, which holds the EU's rotating presidency until the end of the year.

"Settlements are illegal under international law and constitute an obstacle to peace. The European Union reiterates its call on Israel to immediately end settlement activities," it said.

On Monday, Israeli Defence Minister Ehud Barak authorised the construction of 455 units, most of them in the large settlement blocs that Israel has said it wants to keep in the event of a final peace agreement.

The move came just days ahead of a planned visit to the region by US Middle East envoy George Mitchell and sparked criticism that it will undermine peace efforts.

All Jewish settlements are illegal under international law because they are built on Arab land (mainly Palestinian), illegally occupied by Israel.

Around illegal 200,000 Jewish settlers are estimated to have moved into the dozen or so Israeli settlements in Palestinian East Jerusalem.

There are about 300,000 more illegal Jewish settlers currently living in settlements the Palestinian West Bank.

The settlers adhere to radical ideologies and are ex... >>>