Israeli Finance Minister Backs Controversial West Bank Settlement, Vows to Undermine Future Palestinian State
Israeli Finance Minister Bezalel Smotrich, a prominent figure in Israel’s far-right political wing, has openly declared his support for a highly contentious housing project in the occupied West Bank, stating that it will effectively eliminate any prospects for a future Palestinian state. Speaking at a press conference, Smotrich announced plans to construct over 3,000 housing units in the E1 area, a long-disputed zone located between Jerusalem and the large Israeli settlement of Maale Adumim.
Israeli Minister’s Construction plans
The E1 corridor holds immense strategic significance. If fully developed, it would create a continuous bloc of Israeli-controlled territory stretching from Jerusalem to Maale Adumim. Such construction would physically sever East Jerusalem from the rest of the West Bank and make it virtually impossible for a contiguous Palestinian state to emerge—one that includes East Jerusalem as its capital, a core demand in peace negotiations.
The E1 project has been stalled for nearly two decades due to widespread condemnation from the international community, including the European Union and the United States. Many world leaders view development in the area as a “red line” that would severely hinder any realistic two-state solution to the Israeli-Palestinian conflict.
In a defiant tone, Smotrich dismissed global opposition and said the project’s implementation would be a major blow to Palestinian national aspirations. “This will bury the idea of a Palestinian state once and for all,” he said. “There is nothing to recognise, and no one to recognise. This land is our inheritance, and we are fulfilling our historical and divine right.”
The Israeli government disputes the international consensus that settlement construction in the occupied territories violates international law. However, the vast majority of the global community—including the United Nations, the International Court of Justice (ICJ), and numerous human rights organisations—consider the settlements to be illegal, citing the Fourth Geneva Convention which prohibits an occupying power from transferring its civilian population into the territory it occupies.
Israel’s territory placement
Today, an estimated 700,000 Israeli settlers live in more than 160 settlements scattered across the West Bank and East Jerusalem. These areas are territories that Palestinians view as essential parts of a future sovereign state.
At the press conference where the announcement was made, Smotrich was joined by Israel Ganz, Chairman of the Yesha Council (a prominent settler advocacy organisation), and Maale Adumim’s Mayor Guy Yifrach. Smotrich framed the decision as a nationalist and religious act, declaring: “This is Zionism at its best—building, settling, and asserting our sovereignty over the entire Land of Israel.”
The timing of the announcement is especially provocative, coming amid a recent wave of international recognitions of Palestinian statehood. In recent days, several European countries, including Spain, Norway, and Ireland, have pledged to formally recognise the State of Palestine in the near future. When questioned by the BBC about what message this settlement plan sends to countries like the UK and France—which are also considering recognition—Smotrich responded bluntly: “It’s not going to happen. There will be no state to recognise.”
The response from the Palestinian side has been one of outrage. The Palestinian Ministry of Foreign Affairs condemned the Israeli move, describing it as “an extension of crimes of genocide, displacement, and annexation.” The ministry asserted that expanding settlements in such a sensitive area not only violates international law but also constitutes a deliberate attempt to erase the Palestinian people from their ancestral lands.
Peace Now, an Israeli anti-settlement watchdog, accused the Netanyahu-led government of accelerating annexation policies. “This government is using every possible moment to deepen the occupation and prevent the establishment of a Palestinian state,” the group stated. “The only viable path to end the conflict and defeat extremism, including Hamas, is through the creation of a Palestinian state alongside Israel. The government is dragging us toward endless bloodshed instead of peace.”
The construction of the 3,401 housing units in the E1 area has remained frozen since the early 2000s due to mounting diplomatic pressure. The area is particularly sensitive because of its potential to permanently fragment Palestinian territory. By severing the connection between northern and southern West Bank cities—like Ramallah, Bethlehem, and East Jerusalem—it would eliminate the geographical continuity required for a viable and independent Palestinian state.
How long has Israel and Palestine been at each other
Tensions between Israeli settlers and Palestinian communities have risen sharply since the Hamas-led attack on Israel on October 7, 2023. In response, Israel has significantly increased its security measures and presence in the West Bank, actions which it defends as necessary counter-terrorism efforts. However, critics argue that these steps amount to collective punishment and a continuation of policies designed to entrench Israeli control over Palestinian lands.
Adding to the controversy, Smotrich—along with Israeli National Security Minister Itamar Ben-Gvir—was sanctioned by the United Kingdom in June 2025 for what the UK described as “ongoing incitements to violence against Palestinian communities” in the West Bank. The sanctions include travel restrictions and asset freezes, highlighting growing international concern over the far-right influence within Israel’s current government.
As the international community continues to grapple with the fallout from the Gaza war and mounting calls for a political resolution, Israel’s renewed push to expand settlements in one of the most disputed areas of the West Bank is likely to trigger diplomatic backlash and further isolate the country on the global stage.
