France and Italy say they're “not ready” to “start thinking in terms of sanctions” against Israel for approving new housing construction - and Israel is standing firm on its plans to go forward with plans to close the gap between Jerusalem and Maale Adumim, despite the veiled threats. Both governments denied reports they planned to recall their envoys from Israel. “We don't want to shift into sanctions mode,” said French President Francois Hollande in a news conference Monday with Italian Prime Minister Mario Monti in Lyons. "We are more focused on persuading. It's an important moment, but I appeal for responsibility.” Israel, meanwhile, will not give in to international pressure to halt plans to build the new homes, a source in Prime Minister Binyamin Netanyahu's office said Monday.