EU and European diplomatic representatives in Al-Quds and Ramallah warned Monday of the consequences of Israel's settlement policy and its demolition of Palestinian homes in the occupied territories.

A joint statement released by the representatives and the heads of the EU mission stated that this policy "would only escalate an already tense environment and lead to further violence and human suffering."

The statement added: "Israeli authorities should immediately cease these activities and provide adequate permits for the legal construction and development of Palestinian communities."

They also renewed the EU's commitment to a "two-state solution that meets Israeli and Palestinian security needs and Palestinian aspirations for statehood and sovereignty, ends the occupation that began in 1967, and resolves all permanent status issues to end the conflict.".

Israeli occupation authorities demolished on June 29th a Palestinian shop in the Al-Bustan neighborhood in Salwan, in Occupied Al-Quds, also giving demolition notices to a number of buildings in the neighborhood, with 20 homes in danger of impending demolition, while more than 1000 Palestinians in Al-Bustan face the danger of having their homes demolished.

The EU had earlier stated that it does not recognize Israeli authority over the West Bank, noting that "Israel's" decision to annex some of its areas is a dangerous breach of international law.