The Israeli government is undermining stability in the West Bank as settler violence reaches unprecedented levels, a coalition of western countries says, as its leaders call for an end to construction of Israeli settlements it says breach international law.In a joint statement issued on Friday, Anthony Albanese and the leaders of the UK, Italy, France, Germany, Canada, Norway, the Netherlands and New Zealand said:“Over the past few months, the situation in the West Bank has deteriorated significantly. Settler violence is at unprecedented levels.“The policies and practices of the Israeli government, including a further entrenchment of Israeli control, are undermining stability and prospects for a two-state solution.“International law is clear: Israeli settlements in the West Bank are illegal.”The statement singled out the E1 Israeli settlement project, which would connect occupied territories in East Jerusalem with another Israeli settlement in the West Bank. According to a tender published by the Israel Land Authority in January and first reported by the Guardian, the project would contain 3,401 housing units.Sign up for the Breaking News Australia emailIsrael’s far-right finance minister, Bezalel Smotrich, who is himself a settler, said when the project was approved in August last year that it would “bury” the idea of a sovereign Palestine.“Those in the world trying to recognise a Palestinian state will get an answer from us on the ground,” he said at the time.“Not through documents, not through decisions or declarations, but through facts. Facts of homes, neighbourhoods, roads and Jewish families building their lives.”Smotrich and Itamar Ben-Gvir were sanctioned last June by the governments of Australia, Canada, New Zealand, Norway and the United Kingdom for inciting extremist violence and serious abuses of Palestinian human rights.