'Final nail in coffin of Palestinian state idea': Smotrich okays controversial settlement expansion plan

Finance minister announces 3,401 new homes near Ma’ale Adumim and 3,515 more in nearby area, reviving long-stalled E1 project seen by critics as strategic barrier to future Palestinian state; move signals push for de facto Israeli sovereignty in West Bank

Finance Minister Bezalel Smotrich, who also holds a position in the Defense Ministry with oversight of settlement affairs, announced Wednesday he is approving the construction of 3,401 housing units in the E1 area near the West Bank settlement of Ma’ale Adumim, a move likely to inflame tensions with the Palestinians and the international community.
The E1 project, long delayed due to international pressure, is viewed by critics as a major obstacle to a future Palestinian state. Peace group Peace Now has previously described the plan as “a death blow” to the two-state solution, arguing it would bisect the West Bank and prevent development of a contiguous Palestinian metropolitan area connecting Ramallah, East Jerusalem and Bethlehem.
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הדרך למעלה אדומים
הדרך למעלה אדומים
Ma'ale Adumin
(Photo: AHMAD GHARABLI / AFP)
There has been no formal government authorization of the project beyond Smotrich’s public statement. Similar plans announced in the past have often stalled for years. Nonetheless, the minister insisted the project would move forward.
“The plan links Ma’ale Adumim to Jerusalem and severs the Arab continuity between Ramallah and Bethlehem,” Smotrich said. “It is the final nail in the coffin of the Palestinian state idea. For the Palestinians and the international community, this is a strategic area without which a Palestinian state with a capital in East Jerusalem cannot exist.”
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Smotrich added that another 3,515 housing units would be built in a nearby neighborhood called Tzippor Midbar. He framed the announcement as part of what he called a “de facto sovereignty” policy initiated under the current government, aimed at expanding Israeli control over the West Bank.
“After decades of international pressure and construction freezes, we are breaking the mold and connecting Ma’ale Adumim to Jerusalem,” he said.
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בצלאל סמוטריץ
בצלאל סמוטריץ
Finance Minister Bezalel Smotrich
(Photo: Alex Kolomoisky)
Although the plan has yet to receive formal approval, it was welcomed by local leaders. Yisrael Gantz, head of the Binyamin Regional Council, called it “a historic achievement for the settlement enterprise on the way to applying sovereignty.” The mayor of Ma’ale Adumim said Palestinian efforts to encircle the area through illegal construction would be thwarted by the new neighborhood.
The E1 move forms part of a broader shift under Smotrich’s leadership of the Civil Administration, marked by settlement expansion in strategic areas. The stated goal is to advance Israeli sovereignty and derail the establishment of a Palestinian state.
If implemented, the E1 construction would send a clear message to countries that have recently recognized or signaled support for Palestinian statehood. Smotrich has previously announced new settlement approvals in response to diplomatic actions by Palestinian Authority President Mahmoud Abbas.
Within Israel’s religious nationalist camp, there is a growing expectation that calls for Palestinian statehood will intensify after the war in Gaza ends. Holding the press conference in E1—where development has been frozen for years under international pressure—was widely seen as a signal of the government’s intentions.
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