EU leaders condemn Israel on settlement plan

BRUSSELS, March 14 (Reuters) - European Union leaders on Friday condemned Israeli plans to build hundreds of new homes in a Jewish settlement in the occupied West Bank, and called on Israel to act swiftly to keep peace efforts alive.

"The EU reiterates that settlement building anywhere in the occupied Palestinian Territories, including East Jerusalem, is illegal under international law," the bloc's presidency said in a statement after a summit of EU leaders.

"Settlement activity prejudges the outcome of final status negotiations and threatens the viability of an agreed two-state solution. The European Council therefore urges Israel to take immediate action in particular on settlements and outposts," the leaders said.

Israel said on Sunday that plans to build a total of 750 homes in Givat Ze'ev, a settlement near Jerusalem, were being revived.

The new building was announced three days after a Palestinian gunman killed eight students at a Jewish seminary in Jerusalem associated with the settler movement.

EU leaders condemned that attack but said: "While recognizing Israel's legitimate right to self defence, the European Council calls for an immediate end to all acts of violence."

The European Union is part of the Quartet of international mediators trying to promote peace talks aimed at creating a Palestinian state alongside Israel by the end of this year, as agreed in Annapolis, Maryland, last November.

"Despite the difficulties that the process has recently experienced, the European Council welcomes the intention of the parties to resume their negotiations and looks forward to an early meeting of Quartet principals," the statement said.

EU leaders also said they were "deeply concerned by the unsustainable humanitarian situation in Gaza and called for the controlled and sustained reopening of all crossings in and out of Gaza for both humanitarian reasons and commercial flows."

(Reporting by Ingrid Melander; Editing by Paul Taylor and Jon Boyle)