Israel has given final approval to a highly contentious settlement project in the occupied West Bank, a move that critics say could permanently derail hopes for a two-state solution, Reuters reported Wednesday.
Finance Minister Bezalel Smotrich confirmed that the long-stalled E1 project, which would effectively split the West Bank and cut it off from East Jerusalem, received the go-ahead from a defense ministry planning body. “With E1 we are delivering finally on what has been promised for years,” Smotrich said, adding, “The Palestinian state is being erased from the table, not with slogans but with actions.”
The plan envisions construction of about 3,400 housing units adjacent to Maale Adumim. First proposed years ago but repeatedly frozen under international pressure, E1 could see infrastructure work begin within months, according to advocacy group Peace Now.
The Palestinian foreign ministry denounced the move, warning that the project would isolate Palestinian communities and crush prospects for a viable state. Germany also voiced strong opposition, saying the expansion “hinders a negotiated two-state solution and an end to the Israeli occupation of the West Bank.”
Israeli Prime Minister Benjamin Netanyahu did not directly comment on E1, but during a recent visit to another West Bank settlement he reaffirmed his longstanding opposition to Palestinian statehood, declaring Israel would “do everything to secure our grip on the Land of Israel.”
Most of the international community considers Israeli settlements in the West Bank illegal under international law, though Israel disputes this, citing historic and biblical claims as well as security concerns.
The timing of the approval comes as several Western governments signal they may recognize a Palestinian state at the United Nations General Assembly in September, further deepening Israel’s diplomatic isolation.

