SAARISELKA (FINLAND), March 13, 2010 (WAFA)- The European Union on Saturday urged Israel to urgently resume peace talks with the Palestinians on the eve of foreign policy chief Catherine Ashton's first visit to the region.

Ashton, who is leaving on Sunday for a tour of the Middle East, warned that reconciliation efforts could fail for good and slammed this week's announcement of plans to build new settler homes in east Jerusalem.

'I'm very concerned, I'm concerned that Israeli announced this just as the proximity talks were beginning' between Israelis and the Palestinians, AFP  quoted her as sayig.

Ashton called on Israeli Prime Minister Benjamin Netanyahu 'to demonstrate leadership,' as she spoke to journalists on the sidelines of a meeting with several European foreign ministers in Saariselka, in northern Finland.

'We need a negotiated peace settlement, it needs to happen quickly and now,' she said.

Ashton said she would tell Netanyahu that 'he's in a unique position, he has a high rating in Israel, and it's not always the case, and there has been over the past month relative calm.' She said the Israeli premier should seize the opportunity to take his people to 'the possibility of a long term calm and prosperity.

'And that can only be done by reaching a settlement,' she added.