France, an active mediator in Israeli-Palestinian disputes, condemned on Monday Israel\'s settlement expansion plan in East Jerusalem and urged it to block the decision. \"France condemns the unacceptable decision (and) recalls that the settlement, both in the West Bank and East Jerusalem is illegal ...\", said foreign ministry spokesman Bernard Valero. Valero noted that Israel moves to build more houses represent \"an additional provocation\" at a time international community is working to relaunch deadlocked negotiation between Palestinian and Israeli officials. \"Besides being illegal, the continuation of settlement will take away prospects of making Jerusalem the capital of two states which is necessary to reach peace agreement\", Valero said in an electronic press briefing. The direct Israeli-Palestinian peace talks have been stalled in September 2010, after hardliner Israeli Prime Minister Benjamin Netanyahu refused to freeze settlement construction in the West Bank and East Jerusalem.