PARIS - France called on Israel to 'immediately' reverse a decision to approve the building of 200 new settlements in East Jerusalem, a move it said directly threatened a two-state peace solution. 'The decision by the Israeli authorities approving the construction of 200 new homes in the Ramot settlement again directly threatens a two-state solution,' French Foreign ministry spokesman Romain Nadal said. 'We call Israel to immediately go back on this decision at a time when everything should be done to stop the escalation (in violence) and relaunch the peace process,' Nadal said in an unusually strong statement. The new housing is slated for a sprawling hillside complex of apartment buildings and private homes at the northern edge of Jerusalem, on land Israel captured in a 1967 war and annexed to the city in a move never recognised internationally. Palestinians want this territory as part of a future state. French lawmakers are set to hold symbolic parliamentary votes over the next month on whether the government should recognise Palestine as a state, a move likely to anger the Jewish state.