Finance Minister Smotrich announces new Israeli settlement plan, calling it the 'final nail in the coffin' of a Palestinian state

Controversial E1 plan has been announced, and then withdrawn, several times

Israeli Finance Minister Bezalel Smotrich announced on Wednesday evening that he would approve the E1 plan, which calls for the construction of over 3,000 housing units in Ma’aleh Adumim, located east of Jerusalem.

The controversial plan has been described as a “death blow” to the idea of a Palestinian state by peace activists and has remained frozen for decades due to concerns it would cause overwhelming international criticism.

The original E1 plan calls for construction that would link Jerusalem to Ma’aleh Adumim, severing the connection between Judea and Samaria, i.e., splitting into two the West Bank, which the international community seeks to establish as a Palestinian state.

However, the organization “Peace Now” indicated that Smotrich’s newly approved tenders involve “a large neighborhood that will connect Ma’ale Adumim’s built-up area with the industrial zone to its east.”

“The 3,300 housing units in Ma’ale Adumim represent an increase of about 33% in the settlement’s housing stock – an enormous expansion for a settlement whose population has been stagnant at around 38,000 for the past decade and has experienced net out-migration,” the group complained.

It is unclear whether Smotrich’s announcement signals real progress on the E1 plan. Aside from his comments, there has been no official confirmation of its approval, and in the past, similar declarations have been quietly withdrawn.

In addition to serving as finance minister, Smotrich also holds a ministerial position in the Defense Ministry, with authority over settlement expansions.

“The approval of the construction plans in E1 buries the idea of a Palestinian state and continues the many steps we are implementing on the ground as part of the de facto sovereignty plan, which we began to realize with the formation of the current government,” Smotrich said.

“After decades of international pressure and freezes, we are breaking conventions and connecting Ma’ale Adumim to Jerusalem.”

Despite the lack of confirmation, local leaders praised the announcement.

This is “a historic achievement for the settlement enterprise toward applying sovereignty,” said Israel Gantz, head of the Binyamin Regional Council.

The mayor of Ma’ale Adumim stated, “The Palestinians tried to create a chokehold through illegal construction, and building this neighborhood will crush their objective.”

According to Ynet News, the announcement is part of an effort within the Religious Zionism camp to pre-empt international calls to recognize a Palestinian state .

On Wednesday, Israeli Foreign Minister Gideon Sa’ar, who rejoined the Likud party, also rejected the potential establishment of a Palestinian state as it would be an existential threat to Israel.

“A two-state solution? A Palestinian state in the heart of Israel would indeed be a solution – for those who seek to eliminate us. We will not let this happen,” Sa’ar told a delegation of journalists led by Newsmax founder and CEO Christopher Ruddy in Jerusalem.

“If large countries like France and Canada want to establish a Palestinian state in their territory, they can – they have enough territory. But here in the Land of Israel, it will not happen,” he added.