Reuters reports: Israel’s government broke all its settlement-building records in 2011, diminishing prospects for establishing a viable Palestinian state in the occupied West Bank, Israel’s anti-settlement activist group “Peace Now” said Tuesday.

The group’s annual report on building in Arab East Jerusalem and the West Bank – land the Palestinians want for a future state along with the Gaza Strip – showed that despite international calls to halt construction, thousands of new homes were being built.

“In 2011 (Israeli Prime Minister Benjamin) Netanyahu broke his government’s building records and turned it into a very fruitful year for the settlers and a very sad one for the citizens of Israel,” Peace Now director Yariv Oppenheimer said.

“At the current rate of building we will lose the chance for a two-state solution.