U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. Image Source: IANS News

Brussels, Jan 29 : The European Union (EU) will study and assess US President Donald Trump's Middle East peace plan, said a top diplomat.

Josep Borrell, the EU high representative for foreign affairs and security policy, in a declaration on Tuesday pledged the EU's "firm and united commitment to a negotiated and viable two-state solution", reaffirming the bloc's readiness for resuming negotiations between Israel and Palestine, Xinhua news agency reported.

Borrell urged the two sides to demonstrate a genuine commitment to the two-state solution as the only realistic way to end the conflict.

At a White House ceremony attended by Israeli Prime Minister Benjamin Netanyahu on Tuesday morning, Trump announced the plan that would allow the creation of a Palestinian state with a capital in parts of East Jerusalem, in an effort to achieve a peace breakthrough with Israel.

Under the proposed plan, the US will recognize Israeli settlements on the occupied West Bank.

In exchange, Israel would agree to a four-year freeze on new settlement activities during the negotiation over Palestinian statehood parameters.

Palestinian President Mahmoud Abbas has rejected the peace plan, saying it "will end in the dustbin of history".

"Jerusalem is not for sale," he said.

"Your conspiracy deal will not pass and the Palestinian people will reject it."

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