The European Union's foreign policy chief, Federica Mogherini, voiced concern that recent developments in the region would hinder the possibility of a two-state solution.
Mogherini made the remarks at the Third Regional Forum of the Union for the Mediterranean on Monday.
"Just to mention three main crises we have constantly on our agenda: the war in Syria that is not over yet, Libya still torn by violence and instability, and the perspective of a two-state solution for Israel and Palestine that continues to be dismantled piece by piece," Mogherini said.
Mogherini further addressed recent plans to construct a desalination plant in Gaza, saying that "we are closer than ever to turning the desalination plant for Gaza into reality."
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In August, Israel permitted plans to move a shipping container carrying equipment to help complete the installment of a large desalination plant.
"This is not only a highly symbolic project but an action with life-changing impact for literally millions of people," Mogherini added.
Mogherini met with Israeli Arab leader and chairman of the Joint List party, MK Ayman Odeh, in September to discuss Israel's passage of the nation-state law.
"The nation-state law is first and foremost a matter of how Israel chooses to define itself, and we fully respect the internal Israeli debate on this," Mogherini's office said after the meeting.