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