Europe’s top diplomat on Saturday called for a Palestinian state sharing Jerusalem as its capital with Israel, hours after the police killing of an Arab-Israeli further fanned tensions. The appeal by the European Union’s Federica Mogherini followed the dawn killing of the man by police in northern Israel, with his family saying he was killed “in cold blood” and a video showing he was shot in the back. “I think Jerusalem can be and should be the capital of two states,” the new EU foreign policy chief told reporters in the Israeli-occupied West Bank city of Ramallah. …