For the second time in a week, the French government on Wednesday condemned Israel\'s illegal settlement policies and warned that these policies are an obstacle to peace with the Palestinians. France expressed \"concern\" over a new Israeli decision to approve the building of 277 settlements in Ariel, a decision that closely follows another Israeli approval to build hundreds of housing units in sensitive, Arab East Jerusalem, which is destined to be the capital of a new Palestinian State. \"The French position is well known,\" a Foreign Ministry statement said here. \"Settlement-building is illegal and constitutes an obstacle to peace. We condemn it,\" the statement added. \"I recall that France and its European partners voted in favour of a draft resolution in the Security Council in this vein on February 18 last,\" the Foreign Ministry said. The resolution condemning Israeli settlement policies was vetoed by the United States.