Berlin- German Chancellor Angela Merkel said Sunday that Israeli Prime Minister Benjamin Netanyahu has foiled Palestinian-Israeli negotiations when he approved building 1100 housing units in East Jerusalem.
She said, following a phone call with Netanyahu described by her as "very difficult," that "I am unable to believe anything Netanyahu says."
Haaretz newspaper described the crisis between Merkel and Netanyahu as unprecedented, due to the Israeli intransigence in continuing settlement activities.
It added that the US administration scolded the Israeli ambassador in Washington, considering settlement activities as endangering the resumption of negotiations and American efforts to achieve peace.
Israeli sources said Germany may stop supporting Israel against establishing a Palestinian state.
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