Israel Approves Settlement Plan to Erase Idea of Palestinian State

JERUSALEM, Aug 21 2025 - In a move condemned globally, Israel granted final approval on Wednesday for the contentious E1 settlement project—a plan viewed by critics as a major blow to the prospects of a future Palestinian state. Israeli Finance Minister Bezalel Smotrich announced that the Defence Ministry’s planning commission had formalized the project, which would bisect the occupied West Bank and sever its connection to East Jerusalem .

Smotrich, a far-right figure within Israel’s ruling coalition, declared, “With E1, we are delivering finally on what has been promised for years… The Palestinian state is being erased from the table, not with slogans but with actions.” 

The E1 area, adjacent to Ma’ale Adumim, is slated to host approximately 3,400 housing units. Its development is widely criticized for potentially fragmenting Palestinian territorial continuity .

Global Outcry

• United Nations: Spokesperson Stéphane Dujarric condemned the plan, asserting that it “puts an end to prospects of a two-state solution” and called on Israel to halt all settlement activity .
• United Kingdom: Foreign Minister David Lammy condemned the move on X, stating it would “divide a Palestinian state in two, mark a flagrant breach of international law and critically undermine the two-state solution.” He urged Israel to reverse the decision .
• Germany: A government spokesperson warned that the settlement initiative violates international law and impedes a negotiated path to peace in the West Bank .

Palestinian Response

The Palestinian Foreign Ministry denounced the approval, warning that it would severely isolate Palestinian communities and erode the foundation for a viable two-state solution .

Political Context

Although Prime Minister Benjamin Netanyahu has not directly addressed the E1 approval, his recent remarks during a visit to a West Bank settlement reflect similar sentiments: “I said 25 years ago that we will do everything to secure our grip on the Land of Israel, to prevent the establishment of a Palestinian state… Thank God, what I promised, we have delivered.” 

Implications and Next Steps

Originally paused in 2012 and again in 2020 due to U.S. and European pressure, the E1 project now moves forward with new urgency. Israeli advocacy group Peace Now warns that infrastructure work could begin within months, with actual home construction starting in about a year .

Internationally, the plan is viewed as illegal under international law—a status Israel disputes—further fueling concerns that the two-state solution is increasingly unattainable.