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Labour may quit Israel coalition over settlements

Israel's Labour Party may quit the ruling coalition over the decision to build 1,600 settler homes in annexed Arab east Jerusalem, Agriculture Minister Shalom Simhon warned on Thursday.

"Members of the Labour Party have more and more difficulty in taking part in a coalition government that they joined with the purpose of relaunching the peace process with the Palestinians," Simhon told army radio.

"The anger of (US Vice President Joe) Biden is justified. A grave error has been committed (by Israel) and there is a price to pay," he added.