The Israeli government gave the green light to a new housing project in East Jerusalem. Construction there means peace talks between Palestine and Israel are still out of reach.

Palestinians claim East Jerusalem will be their future capital. Palestine petitioned for UN membership last week. It wants to be recognized as an independent state.

The EU’s foreign policy chief called the decision provocative. Catherine Ashtonsaid this runs contrary to Israel’s commitment to negotiation.

Israeli prime minister Benjamin Netenyahu said a 10 month halt in construction last year produced few results. Construction could begin as early as November.