German Chancellor Angela Merkel said Friday she was concerned about Israel's building of settlements in the occupied West Bank, which she said was undermining progress towards a two-state solution for Israel and the Palestinian territories.
Israel is building settlements in the occupied West Bank and East Jerusalem - seized by Israel in a 1967 war and occupied for nearly 50 years - where Palestinians want to establish their state and capital.
"As before, I see no reasonable alternative to the goal of a two-state solution," Merkel told reporters before holding talks with Palestinian President Mahmoud Abbas in Berlin.
On the issue of the settlements, she added: "I am very concerned about developments in the West Bank, which are leading to an erosion of the basis for a two-state solution."
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