JERUSALEM/MAALE ADUMIM, August 14, 2025 — In a move drawing immediate international condemnation, Israel’s far-right Finance Minister Bezalel Smotrich announced the revival of the long-stalled “E1” settlement plan. He unveiled sweeping construction intentions for more than 3,400 housing units in the E1 area—located between East Jerusalem and Maale Adumim—a decision he declared would “bury the idea of a Palestinian state.”
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Smotrich, himself a settler, stood at the proposed site and framed the development as irreversible “facts on the ground,” adding: “Whoever in the world is trying to recognize a Palestinian state today will receive our answer on the ground.”
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He further touted implicit backing from Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump, although neither has formally confirmed the claim.
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The E1 project, shelved for over two decades amid U.S. and international pressure, would sever the West Bank’s territorial contiguity—isolating East Jerusalem from adjacent Palestinian areas and slicing the West Bank between Ramallah and Bethlehem. Observers warn that such fragmentation would render a viable Palestinian state virtually impossible.
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Backlash and Legal Alarm
Palestinian officials, rights groups, and Western governments swiftly denounced the plan. The Palestinian Authority labelled it a “land grab” and a grave setback to peace. NGOs like Peace Now warned the settlement plan is “deadly for the future of Israel and for any chance of achieving a peaceful two‑state solution,” stating the government is “driving us forward at full speed across the edge of an abyss.”
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The European Commission reaffirmed that any unilateral territorial change—absent an agreed political settlement—is illegal under international law.
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The United States, for its part, emphasized its focus on ending the Gaza conflict while noting that a stable West Bank aligns with broader peace goals—though it refrained from endorsing Smotrich’s announcement.
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Broader Context
The revival of E1 follows a persistent acceleration of settlement expansion, driven largely by Israel’s far-right coalition and emboldened by perceived leniency from international allies. Since early 2025, the government has approved multiple settlement projects, reversing years of restraint and raising alarms about the erosion of viable Palestinian sovereignty.
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Nations such as the U.K., France, Canada, and Australia are poised to formally recognize Palestinian statehood this September unless Israel reverses course on its policies.
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Global Reaction and Implications
The U.S. and European nations face mounting pressure to respond decisively. Analysts warn that the move may undercut diplomatic efforts for peace, intensify regional tensions, and prompt further international isolation for Israel. Meanwhile, the Palestinians—and the international community at large—view this as possibly the final dismantling of the two-state paradigm.
Smotrich’s announcement signals a critical inflection point in the decades-old conflict. As settlement policies continue to shape the landscape, the question becomes whether a two-state solution remains viable—or if the prospect of a contiguous, sovereign Palestine has been irrevocably compromised.