Israel and Romania are squabbling after Bucharest refused to allow Romanian construction workers to be employed in West Bank settlements, which are considered illegal under international law.  It is Israel's second diplomatic row with an European Union country this week.

Israel has a shortage of workers in the construction sector and the Housing and Construction Ministry has been pressuring the government to sign deals with more countries to increase the number of construction workers in the country.  It’s delaying housing starts in non-controversial parts of Israel.

“Israelis are being harmed by the government’s activity in the (Palestinian) territories,” said Michal Rozin, the chairwoman of the Israeli Parliament’s Committee on Foreign Workers.

But Bucharest says it wants Israel’s pledge the Romanians won't be working in the West Bank.  Talks have been going on since May 2012, and Romania’s foreign ministry says any deal must have “respect for international law, the positions of the EU and the protection of Romanian citizens.”

In 2007, Romania joined the EU, which bans funding for and financial dealing with projects linked to Jewish settlements in the West Bank and annexed east Jerusalem.