The United States and the European Union issued condemnations on Monday of an Israeli plan to build a settlement inside a Palestinian neighborhood straddling the West Bank and East Jerusalem. The condemnations from Washington and Brussels were issued as the Jerusalem District Planning Committee convened to advance the plan onto the final stages of approval before construction can begin in the coming months. During Monday’s hearing, the district committee agreed to advance the project, but asked those behind it to address some minor concerns before the panel would reconvene a second time to approve the plan through the “deposit” stage of planning.

Asked for comment on the development during a press briefing, State Department spokesperson Matt Miller said, “Our views have been clear and consistent: The expansion of settlements undermines the geographic viability of a two-state solution, exacerbates tensions, and further harms trust between the two parties.”“We strongly oppose the advancement of settlements and urge Israel to refrain from this activity. We take the issue very seriously, as it impinges on the viability of a two-state solution. We raise it at the highest levels on a consistent basis,” he added.

The District Planning Committee convened shortly after US Assistant Secretary for Near Eastern Affairs Barbara Leaf arrived in Israel Monday to brief government officials on her talks in Riyadh about a potential normalization agreement between Israel and Saudi Arabia. That deal is expected to require major Israeli moves to advance a two-state solution — a framework that as Miller stressed, is hampered by projects such as the one in Abu Dis.

A spokesperson for the EU said in a separate statement that its long-stated position on settlements, including construction in Israeli-annexed East Jerusalem, is that it is “illegal according to international law and a major obstacle to achieving a two-state solution.”

“The EU has consistently made it clear that it will not recognize any changes to the pre-1967 lines, including in Jerusalem, other than those agreed upon by the parties,” the spokesperson added, urging Israel to cease construction beyond the Green Line.