The spokesman said diplomatic contact would be suspended until Israel had finished a “reassessment” of what role the European Union should play in the peace process.
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It did not go into detail as to which institutions are affected.
The statement said Netanyahu, who is also foreign minister, ordered the freeze in answer to the EU’s November 11 decision to label settlement produce imported to Europe as such rather than “Made in Israel”.
But it went on to say that Israel would continue business as usual with national officials of European member states. Israel has said the decision is discriminatory and unfairly singles out Israel, while the European Union says it is a technical matter to clarify the origins of the products.
The EU’s position is that the lands Israel has occupied since the 1967 Middle East war – including the West Bank, East Jerusalem and the Golan Heights – are not part of the internationally recognised borders of Israel.
The attacks and closure of the station came with Israeli security forces struggling to halt two months of Palestinian knife, gun and car-ramming assaults. In the latest bloodshed, Israeli police reported a pair of stabbings Sunday.
Spokeswoman Luba Samri says the Palestinian attacked the police officer near a gate into the Old City, moderately wounding him.
Later in the morning, a Nepalese woman was lightly wounded in a stabbing attack near a bus stop in Jerusalem, after which the attacker fled.
“We found out about it from the media and we are trying to clarify what it means”, he said.
Several weeks ago, an Israeli security crackdown in Jerusalem, including roadblocks in Palestinian neighbourhoods, was followed by a lull in attacks in the city, but violence has returned.
The violence erupted in Jerusalem amid tensions over the sensitive Al-Aqsa mosque compound but swiftly spread to the flashpoint southern West Bank city of Hebron where several hundred Jewish settlers live under army guard among 200,000 Palestinians.
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Palestinian leaders blame Israel for the wave of violence, saying its continued occupation and settlement building along with a lack of progress in peace efforts have led to hopelessness among young people. At least 96 Palestinians have been killed, including 60 said by Israel to be attackers.
