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Criticism from European body comes after Housing Ministry issues tenders to build 805 units in municipal neighborhoods of Ramot, Pisgat Zeev The European Union on Saturday criticized plans for new construction in Jewish East Jerusalem neighborhoods, saying that Israel's policy was an "obstruction to peace." "The policy of settlement construction and expansion in East Jerusalem continues to undermine the possibility of a viable two state solution with Jerusalem as the future capital of both states, which is the only realistic way to achieve a just and lasting peace," the statement read.