The European Union urged Prime Minister-designate Binyamin Netanyahu on Sunday to craft a government that embraces the long-standing goal of an independent Palestinian state living side by side with Israel.
The prospect of a new hawkish government, with Israel Beiteinu chairman Avigdor Lieberman as a possible foreign minister, will be seen in Europe as a setback to the Middle East peace process.
"Let me say very clearly that the way the European Union will relate to an [Israeli] government that is not committed to a two-state solution will be very, very different," said Javier Solana, the EU's foreign and security affairs chief.
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