The majority of UK dailies report on the rebuke handed out to Israel’s ambassadors by five European governments, including the UK, following the approval given by the Israeli government at the end of last week for the construction of 3,000 new buildings in East Jerusalem and the West Bank and permission for zoning and planning in the controversial E1 area. The diplomatic row is covered by the Guardian, Times, Evening Standard, Metro, Daily Mirror, Daily Mail, Telegraph, Financial Times and Independent, who all note that Israel’s government appears to have rejected appeals to rescind the decision.

The Guardian publishes an editorial on the issue, as does the Telegraph, which notes that Prime Minister Netanyahu is the only Israeli leader to have imposed a settlement freeze in the past and may have electoral considerations in mind. In the Guardian, Ian Black argues that the Europe should take firmer and more decisive action in the region if it wishes to be relevant to the peace process, while Roger Boyes writes in the Times that Netanyahu’s actions must be viewed in the context of internal electioneering.

The Independent includes a report on the swift rebuilding of tunnels beneath the Egypt-Gaza border which is already taking place less than two weeks after the conclusion of Operation Pillar of Defence.

Meanwhile, several publications report on suspicions that Syria’s embattled President Assad is making preparations to use chemical weapons. The Times and the online editions of the Guardian, Telegraph and Financial Times report on worrying signals that chemicals are being moved and prepared for use in Syria, while US President Obama gave a clear warning yesterday that there would be “consequences” if Assad decides to use his chemical stockpile. The Independent online reports that NATO will help combat any threat to Turkey by authorising the deployment of Patriot missile batteries to the Turkey-Syria border.  In a related item, the online edition of the Guardian notes that the United Nations is removing all non-essential staff from Syria as the violence grows.

The Israeli media this morning is also dominated by the European response to the Israeli government’s construction plans, including the reprimand of five Israeli envoys in Europe. Yediot Ahronot calls it a “diplomatic onslaught” on its front page, while Israel Hayom quotes a defiant Israeli official saying that the decision won’t be changed. Meanwhile Haaretz claims that Israel’s government is preparing to announce the construction of further housing units in East Jerusalem. Meanwhile, there is a diverse range of commentary on the issue. Writing in Yediot Ahronot, Shimon Shiffer says that the European reaction is a “new reality” and opines that “The White House authorized Europe to pounce on the Netanyahu government and to punish it.” In Maariv, Shalom Yerushalmi writes “Sometimes nightmares come true… These aren’t Third World countries that we’re talking about, but the most important high-quality, moral and diplomatic belt for Israel.” However, Hanoch Daum in Yediot Ahronot plays down the furor, writing “The State of Israel has all kinds of assets. Sympathy from the countries of Europe isn’t one of the more important ones.”

In other news, Makor Rishon reports that Yisrael Beitenu will approve its list of Knesset candidates this evening, while Tzipi Livni and Yair Lapid have played down speculation that their two parties might unite. Israel Radio News reports notes that a record 42 parties applied to the Central Elections Committee for electoral registration forms. Final lists of candidates must be submitted by 10pm on Thursday.