PMO denies diplomatic rift between Israel, Germany

The Prime Minister's Office on Sunday denied reports that Israel and Germany were in the midst of a diplomatic crisis over Israeli plans to build new housing units in Jerusalem's Gilo neighborhood, which lies over the Green Line.
PMO spokesman Ofir Gendelman said via his Twitter feed that "Israel's relationship with Germany and Chancellor [Angela] Merkel are good & close. When there are differences of opinion they are cordially discussed."
Merkel told Prime Minister Binyamin Netanyahu in a telephone conversation on Friday that the plans to build 1,100 new units in Gilo raises doubts that his government is interested in starting serious negotiations with the Palestinian leadership.