Israel-Palestine Summary: Reactions to Netanyahu's Extension of Settlements

With Israeli Prime Minister Benjamin Netanyahu approving plans to build 238 new homes in East Jerusalem and parts of the West Bank, French President Nicholas Sarkozy’s initiative for direct Israel-Palestine talks has fallen through. The planned peace summit, due to be held Friday, is indefinitely postponed. "We are looking for a new date that works for everybody, although there is nothing firm scheduled yet," an Israeli government official told Reuters.

Washington and Paris said that they were “disappointed” by the decision. In response, the Israeli Prime Minister’s Office said: “We have already said in the past that there is no longer a settlement freeze in Jerusalem. Regarding the relationship with the United States, they received notification of the plan [for the new homes] before we announced it.”

Moroccan King Mohammed VI wrote Israeli President Shimon Peres, was supposed to represent Israel in World Economic Forum, that their meeting was impossible at the moment. So Peres has canceled his trip.

Egypt’s foreign ministry called Israel’s building permit as a provocative step and a sign the direct peace talks could collapse. Egyptian Foreign Minister Ahmed Aboul Gheit said Friday that Arab nations may seek United Nations recognition of a Palestinian state. A day later, following the meeting among the leaders of the Palestine Liberation Organisation, Fatah, and Palestinian Authority, PLO secretary general Yasser Abed Rabbo said: “The Palestinians plan to study their options in coming days. These political options include going to the UN and to the Security Council.”

The 57-nation Organisation of the Islamic Conference condemned Israel for renewing settlement construction in East Jerusalem and urged the international community to put an end to what it called "Israeli arrogance".

Following declarations from Turkey, Britain, and Spain that they would not attend this week's international tourism conference in Jerusalem, the Arab League --- which has given the peace talks another month for resurrection --- has sent letters to world leaders on Sunday supporting a boycott. 

Oh, did I mention that the Palestinian Authority leader Mahmoud Abbas said on Friday that the PA would never sign agreement recognizing Israel as a Jewish state?