Israel accused of sabotaging peace effort
Israeli Interior Ministry spokeswoman Sabine Hadad said new apartments were approved for construction in the ultra-Orthodox Ramat Shlomo neighbourhood to help alleviate a housing shortage in Jerusalem.
The fate of the holy city, site of shrines sacred to Judaism, Islam and Christianity, lies at the heart of the Israeli-Palestinian conflict. Palestinians hope to make east Jerusalem the capital of their future state, and say continued Israeli construction there makes it difficult to persuade ordinary Palestinians to support peace talks.