‘’Israel’s plans to construct 98 new housing units in what is effectively a new settlement in the northern West Bank, near the existing settlement of Shiloh, calls into question Israel's commitment towards reaching a negotiated agreement with the Palestinians,’’ the European Union External Service (EEAS), the EU’s diplomatic service led by EU foreign affairs chief Federica Mogherini, said in a statement.

‘’This decision continues the accelerating trend of new settlement announcements since the start of 2016 and risks further separating Ramallah from Nablus and thus further undermining the contiguity of a future Palestinian state,’’ reads the statement.

‘’The retroactive authorisation of nearby illegal outposts or redrawing of local settlement boundaries contradicts previous public statements by the government of Israel that it had no intention of creating new settlements.’’

The EU said that ‘’the decision to continue settlement building and expansion goes directly against the recommendations of the Quartet Report, weakens rather than strengthens the prospects for a two-state solution to the Middle East peace process, and makes the possibility of a viable Palestinian state more remote.’’

It added that “settlements are illegal under international law” an

On Wednesday, U.S. State Department spokesman Mark Toner said the Israeli plans were "deeply troubling" partly because it came after Israeli agreement with Washington on U.S. military aid designed to bolster Israel's security.

Israel said that the construction plans breach no commitments, do not constitute a new settlement and are meant to house settlers who are about to be evicted from the illegal outpost of Amona, under an order of the Supreme Court.