Kadima head Tsipi Livni said Tuesday that the European Union's decision to call for negotiations between Israel and the Palestinian Authority over the status of Jerusalem was "regrettable, and not good for Israel." She added that the original Swedish proposal to declare eastern Jerusalem the capital of a nonexistent Palestinian state "was a mistake, and I said so to the Swedish foreign minister and the French president, who also opposed the Swedish formula," Livni said.

However, she added, the decision was the natural result of Israel's lack of policies on how to approach negotiations with the PA. "Until last year there was ongoing negotiations between Israel and the PA, and no building freeze was necessary to show we were serious. Without negotiation policies, Israel's basic interests become eroded," she said.