Portugal says Israel undermining Palestinian state through settlement expansion

LISBON, Sept 14 (Reuters) - ‌Portugal's foreign ​minister ​said on Monday that Israeli settlement expansion and economic pressure in ‌the occupied West Bank and East Jerusalem ⁠were undermining prospects for a viable Palestinian state.

• ‌Foreign Minister Paulo Rangel ‌said Israel's E1 settlement plan was "extremely pernicious" because it would divide the West ​Bank, isolate East Jerusalem and was incompatible with a two-state solution.

• Israel's withholding ⁠of Palestinian tax revenues amounted to a "brutal strangulation" of the ​Palestinian Authority's finances, preventing the economy from functioning, he said after meeting ​Palestinian Foreign Minister Varsen Aghabekian ‌Shahin in Lisbon.

• Rangel also cited the closure of Christian schools ⁠in East Jerusalem as evidence of worsening conditions there.

• Portugal recognised the State of Palestine ⁠a year ago.

• Rangel said the two-state solution ​was the only way to guarantee peaceful coexistence between Israelis and Palestinians.

• Israel said last week it ‌was closing Britain's consulate in East Jerusalem in response to plans ‌by the UK, France and Canada to ⁠block imports from ‌Israeli settlements in ​the West Bank.

(Reporting by Sergio Goncalves; editing by Charlie Devereux and Ros ‌Russell)

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