Israel settlements: Netanyahu defies outcry over E-1
3 December 2012 Last updated at 23:10 GMT
Israel says it will not give in to international pressure to halt plans for 3,000 new settler homes in East Jerusalem and the West Bank.
PM Benjamin Netanyahu's office said Israel would continue to stand by its "vital interests" and would not change its decision.
The UK, France, Spain, Denmark and Sweden summoned Israeli ambassadors in protest at the plans.
The US also called on Israel to "reconsider" its decision.
The BBC's Middle East Correspondent, Wyre Davies reports.