Israel can't legally build in East Jerusalem as it's part of the occupied Palestinian territories. If Peres wants to build, let him build on the Israeli side of the city, in West Jerusalem. I can't imagine the American governement building in Mexico City and claiming it's American land. Why would Israel build in East Jerusalem when it fully belongs to the Palestinians? Peres may want to attend a few classes on International Law.
IDF reservist, 44, dies of heart attack during training (Haaretz)
from the article: Peres to EU: Israel has every right to build in Jerusalem