Hours after Prime Minister Benjamin Netanyahu tried to appease his Likud and Habaiyt Hayehudi ministers by announcing construction of housing units in West Bank settlements and in East Jerusalem on Wednesday, the international community responded with condemnations.

Earlier on Wednesday, Netanyahu caved to pressure from the right and from within his government over the demolition of housing units in Beit El, and announced the immediate construction approval for 300 housing units in Beit El. In addition, he approved moving forward with the planning of 500 new housing units in Jewish neighborhoods in East Jerusalem.

A statement published by the European Union said that Netanyahu's declarations "call into question the Israeli government's stated commitment to a negotiated two-state solution in the Middle East peace process. The EU called on the prime minister to call off the move.

Plans by the Israeli government to legalize West Bank outposts would further undermine the possibility of effectively implementing a two-state solution, the EU said.

"The EU expects the Israeli government to demonstrate its commitment to the two-state solution not only in words, but also through its actions." The statement read. "We urge the government of Israel to urgently reverse recent decisions and put an end to settlement expansion."

Palestinian President Mahmoud Abbas on Wednesday warned that Israel's continued building of West Bank settlements would thwart efforts to renew the peace process.

"The continued building in the settlements will destroy international efforts to renew the peace process," Abbas told representatives of the European Parliament during a meeting in Ramallah.

According to Abbas, the Palestinian leadership accepted the proposal to renew the peace process along lines that would lead to the establishment of a Palestinian State within the 1967 borders with a capital in Jerusalem.

Abbas's spokesperson Nabil Abu Rodaina called on the international community on Wednesday to intervene and stop the deterioration of the situation on the ground, following Netanyahu's announcement that 300 housing units would be built in the West Bank and 500 more would be built in East Jerusalem.