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Israeli finance minister announces settlement expansion to block Palestinian state

Israels (L to R) Foreign Minister Gideon Saar and Finance Minister Bezalel Smotrich attend the address of Argentinas President to a session of the Israeli parliament (Knesset) at its headquarters in Jerusalem, June 11, 2025. (AFP Photo)
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Israels (L to R) Foreign Minister Gideon Saar and Finance Minister Bezalel Smotrich attend the address of Argentinas President to a session of the Israeli parliament (Knesset) at its headquarters in Jerusalem, June 11, 2025. (AFP Photo)
August 14, 2025 08:03 PM GMT+03:00

Far-right Israeli Finance Minister Bezalel Smotrich announced plans to advance construction of more than 3,000 homes in a long-frozen West Bank settlement project, explicitly stating the move would "bury the idea of a Palestinian state."

The controversial E1 development, situated between Jerusalem and the Maale Adumim settlement, has remained stalled for two decades due to international opposition. Construction in the area would effectively sever the West Bank from occupied East Jerusalem, creating a significant barrier to Palestinian territorial contiguity.

"After decades of international pressure and freezes, we are breaking conventions and connecting Maale Adumim to Jerusalem," Smotrich said at a news conference alongside settler organization leaders. "This is Zionism at its best - building, settling and strengthening our sovereignty in the Land of Israel."

A man holds a Palestinian flag as the humanitarian organization Freedom Flotilla Coalition is in Catania from where the ship Madleen will depart on its mission to break the siege on Gaza, in Catania, Italy, June 01, 2025. (AA Photo)
A man holds a Palestinian flag as the humanitarian organization Freedom Flotilla Coalition is in Catania from where the ship Madleen will depart on its mission to break the siege on Gaza, in Catania, Italy, June 01, 2025. (AA Photo)

Minister responds to growing international recognition of Palestinian statehood

The announcement comes as multiple countries have declared intentions to recognize a Palestinian state in the coming months, drawing sharp Israeli criticism. When asked about messages to nations like Britain and France planning such recognition, Smotrich responded: "It's not going to happen. There will be no state to recognise."

The E1 project involves 3,401 housing units in a strategically positioned area that would separate Palestinian communities south of Jerusalem from those to the north, preventing a contiguous Palestinian urban corridor connecting Ramallah, East Jerusalem and Bethlehem.

Israeli right-wing Knesset member Itamar ben Gvir (L) and Bezalel Smotrich (R) during the swearing-in ceremony for the new Israeli parliament the 25th Knesset in Jerusalem, 15 November 2022. (AFP Photo)
Israeli right-wing Knesset member Itamar ben Gvir (L) and Bezalel Smotrich (R) during the swearing-in ceremony for the new Israeli parliament the 25th Knesset in Jerusalem, 15 November 2022. (AFP Photo)

International community condemns settlement expansion plans

International reactions were swift. A U.S. State Department spokesman said "a stable West Bank keeps Israel secure and is in line with this administration's goal to achieve peace in the region." The European Commission rejected "any territorial change that is not part of a political agreement between involved parties."

Approximately 700,000 Israeli settlers currently live in roughly 160 settlements across the West Bank and East Jerusalem, according to Peace Now, an Israeli anti-settlement organization. Palestinians seek this territory for a future independent state.

Bezalel Smotrich, a far-right Israeli lawmaker and leader of the Religious Zionism party, speaks during a rally with supporters in the southern Israeli city of Sderot, 26 October 2022. (AFP Photo)
Bezalel Smotrich, a far-right Israeli lawmaker and leader of the Religious Zionism party, speaks during a rally with supporters in the southern Israeli city of Sderot, 26 October 2022. (AFP Photo)

Palestinian officials and rights groups denounce construction announcement

The Palestinian foreign ministry condemned the settlement plan as "an extension of crimes of genocide, displacement and annexation." Israeli NGO Peace Now warned the Netanyahu government was "exploiting every minute to deepen the annexation of the West Bank and prevent the possibility of a two-state solution."

International law considers settlements illegal, a position supported by a 2024 International Court of Justice advisory opinion. Smotrich, along with National Security Minister Itamar Ben-Gvir, was sanctioned by Britain in June over "repeated incitements of violence against Palestinian communities" in the occupied West Bank.

August 14, 2025 08:04 PM GMT+03:00
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