Berlin's top diplomat was in Israel for a 24-hour visit to discuss the peace process which was largely overshadowed by the death at the weekend of Israel's controversial former prime minister Ariel Sharon who was laid to rest yesterday.
He met with Israel's chief negotiator Tzipi Livni early yesterday then attended both a state memorial service and Sharon's funeral before travelling to Ramallah for an evening meeting with Palestinian president Mahmud Abbas.
"It is clear that the continued building of settlements really hurts the process," he told reporters yesterday before his meeting with Livni, while stressing that Berlin also expected the Palestinians "to do their part".
Just last week, Israel unveiled plans to build another 1,800 new settler homes in the West Bank and annexed east Jerusalem, sparking sharp criticism from Washington and Brussels.
But the German diplomat dodged a question on possible European Union sanctions against Israel, saying only that he would discuss the matter of settlements with his Israeli counterpart Avigdor Lieberman when they met later yesterday.
Chief Palestinian negotiator Saeb Erakat said Ramallah was "doing everything possible" to make the peace process a success and urged European pressure on Israel over the settlements.
Despite Israel's latest settlement announcement, Steinmeier expressed optimism over the ongoing direct negotiations which have been championed by US Secretary of State John Kerry, saying the peace process was at "a quite decisive phase".
"The chances seem to be better this time than before," he said earlier.
Germany's steadfast support of Israel has been a constant since World War II in atonement for its Nazi past, and Berlin is widely seen as Israel's closest ally in Europe.
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