By JERUSALEM POST STAFF
British Prime Minister Gordon Brown said Monday that Israeli settlements in Palestinian territories are one of the largest remaining obstacles to a Mideast peace deal.
Following talks with Palestinian Authority Prime Minister Salam Fayad, Brown said resolving the settlement issue and boosting investment in Palestinian businesses could help broker a solution to the Israeli-Palestinian conflict.
Brown told reporters that "everybody now sees the contours of what a two-state solution would look like - a Palestinian state that was secure and viable economically, an Israeli state that's secure within its own borders and where its worries about peace and stability were answered.
Brown backs Fayad's attempts to stall European Union plans to strengthen relations with Israel until the settlement construction is halted.
Brown will hold talks Tuesday with Prime Minister Ehud Olmert.
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