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Merkel: Israel must stop settlement building
Associated Press

BERLIN - Germany's leader says Israel must halt the construction of settlements, which she says threatens hopes for a two-state agreement with the Palestinians.

Chancellor Angela Merkel told lawmakers Thursday that concessions from all sides are needed - including on Jewish settlements.

Merkel said: "I am convinced that there must be a stop to this, otherwise we will not arrive at a two-state solution that we need urgently."

The U.S. also wants settlement construction in the West Bank to stop completely to help revive Israeli-Palestinian peace talks.

Merkel was addressing the German parliament ahead of next week's Group of Eight summit in Italy.

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