The European Union criticized Israel on Friday for listing some Jewish settlements in the West Bank as special zones, saying the move is against the spirit of a freeze on settlement building.
"The European Union expresses its disapproval of the decision of the government of Israel on December 13 to include settlements in the National Priority Areas program," EU president Sweden said in a statement.
"The decision runs counter to the spirit of the settlement freeze," it said.
The move by Israel on Sunday entitles the communities to millions of dollars of state funding, and is seen as a gesture to settlers furious about a 10-month moratorium on new building permits in settlements after months of US pressure.
"It also prevents the creation of an atmosphere conducive to resuming negotiations on a two-state solution. The European Union encourages Israel instead to continue along the path set forth by the moratorium," the EU said.
"The European Union reiterates that settlements on occupied land are illegal under international law," the statement said, and urged "Israel to immediately end all settlement activities."
The communities designated as "national priority zones" will have access to credits of $41 million, which will benefit 110,000 settlers and can be used for vocational training, education or cultural activities.
Settlers lay cornerstone for youth club
Meanwhile Friday, dozens of settlers gathered to lay a cornerstone and the foundations for a new youth club building in the West Bank settlement of Peduel.
According to the communal village's residents, they are allowed to construct public buildings despite the freeze order, although sources in the Shomron Regional Council said that Defense Minister Ehud Barak included this type of construction in the freeze order as well.
Gershon Mesika, head of the Shomron Regional Council, said that "every day we build a new house in the Land of Israel is a day of celebration."
According to Mesika, "Building in the Land of Israel, and in Samaria in particular, is the most important thing in our time. We must confront and stand strong in the face of the pressure, both on the part of foreign countries and extreme left-wing elements in Israel as well."
Yesha Council Chairman Danny Dayan, who was also present, said that "the decision to freeze constriction from Arad to Afula and from Petah Tikva to the Jordan River is illegitimate."
Roni Sofer contributed to this report