JERUSALEM - The European Union's top diplomat says she is "extremely concerned" over an Israeli push to build new homes in east Jerusalem, territory the Palestinians claim for the capital of a future state.

EU foreign policy chief Catherine Ashton condemned the Israeli construction plan, saying Tuesday it hindered peace efforts and should be reversed.

Israel's Interior Ministry announced plans to build 1,300 housing units in east Jerusalem Monday as Prime Minister Benjamin Netanyahu was in the U.S. for talks with American officials on how to revive the peace process.

Newly launched peace talks have stalled because of disagreements over Israeli settlement construction.

The Interior Ministry says Monday's announcement was procedural and it will take years to build the homes.