JERUSALEM, Oct. 2 (UPI) -- Israeli Prime Minister Binyamin Netanyahu Sunday denied a diplomatic crisis with Germany over new construction plans in East Jerusalem.
The prime minister's staff blamed Israeli media for misrepresenting facts when it was reported Friday that German Chancellor Angela Merkel was "furious" over the 1,100 planned housing units in the Jerusalem neighborhood of Gilo, Haaretz reported.
"Our ties with the German government and Chancellor Merkel are good and close," Netanyahu's office said in a statement. "When we have disagreements they are resolved in good spirits."
A senior Israeli official reportedly said Saturday the construction plan angered Merkel because it thwarted recent attempts to start new peace talks between Israel and the Palestinians, Haaretz said. The official said Germany may now consider support for Palestine as a non-member state in the United Nations General Assembly.
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