Israel suspends EU peace role over illegal settlement goods

Zionist regime said Sunday it is suspending discussion of its conflict with the Palestinian Authority with EU officials, in response to the bloc's decision to label goods imported from the illegal Jewish settlements.

Prime Minister Benjamin Netanyahu, "ordered suspension of diplomatic contacts with the institutions of the European Union and its representatives on this issue," the foreign ministry said in a Hebrew-language statement.

It said the ban would be in force for the duration of a reassessment of the bloc's role in 'peace' efforts.

But it went on to say that Israel would continue business as usual with national officials of European member states.

"It is important to make clear that Israel is maintaining diplomatic talks with individual European states -- such as Germany, Britain and France -- but not with the institutions of the European Union," it said.