TEL AVIV, June 30, 2010 (WAFA)- EU Foreign Policy Chief Catherine Ashton says 'settlements and demolitions of homes are illegal under international law, ' Haaretz Israeli Daily said, today.

Israel's planned demolition of Palestinian homes in the East Jerusalem neighborhood of Silwan is 'an obstacle to peace,' Ashton said Wednesday.

The plan would raze 22 Palestinian homes and construct a tourism center in their place. An additional 66 homes built without the proper permits would receive approval retroactively.

The tourism center for the area, which is called Al Bustan in Arabic and Gan Hamelekh (King's Garden) in Hebrew, is to include restaurants and boutique hotels.

The city said it would help residents of the 22 homes due for demolition to move to other areas of Silwan.