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Finance Minister Smotrich’s Jewish settlement plan earns worldwide condemnation, US signals tacit support

Smotrich vows to 'build Jewish reality' on the ground, 'bury idea of Palestinian state'

 
Israeli Finance Minister Bezalel Smotrich attends a press conference announcing his plans to approve more than 3,000 housing units in the E1 settlement project between Jerusalem and Ma’ale Adumim, August 14, 2025. (Photo: Yonatan Sindel/Flash90)

A new round of worldwide condemnations struck Israel on Thursday after Finance Minister Bezalel Smotrich announced his approval of a settlement plan, which he says will be the “final nail in the coffin” of a Palestinian state.

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

Amid broad condemnation, the U.S. State Department refused to criticize or explicitly endorse the plans, only stressing the importance of “stability” in Judea and Samaria in a vaguely worded response to a reporter’s question.

“A stable West Bank keeps Israel secure and is in line with the Trump administration’s goal to achieve peace in the region,” a spokesperson said.

“We remain focused on ending the war in Gaza and ensuring Hamas will never govern Gaza again, freeing the hostages, including the remains of two Americans, and facilitating the delivery of critically needed humanitarian assistance.”

In response, the United Nations, as well as European and Arab countries, issued strong condemnations of the move, with many warning that, as Smotrich himself indicated, it would end any prospects for a two-state solution.

UN spokesperson Stéphane Dujarric urged Israel to reverse the decision, which, despite Smotrich’s announcement, has not been confirmed by any other official source.

The move “would put an end to prospects of a two-state solution,” Dujarric lamented, adding, “Settlements go against international law… and further entrench the occupation.”

EU top diplomat Kaja Kallas also noted that the plan “further undermines the two-state solution while being a breach of international law,” while British Foreign Minister David Lammy said the United Kingdom “strongly opposes” the plan, adding it “must be stopped now.”

Germany, which earlier this week announced a weapons embargo in a sharp course correction after it had been among the last major Western countries not to join condemnations of Israel, also “firmly” rejected the settlement plan.

In a Foreign Ministry statement, Germany said that “settlement construction violates international law and relevant U.N. Security Council resolutions” and hampers “a negotiated two-state solution as well as an end to the Israeli occupation of the West Bank, as demanded by the ICJ.”

The plans will also “restrict the mobility of the Palestinian population in the West Bank,” the German statement warned, calling on Israel to “halt settlement construction” while rejecting “any annexation plans.”

Several Arab nations, including Qatar and Egypt, also condemned Smotrich’s announcement.

The Egyptian Foreign Ministry decried the “extremist statements,” saying that they were yet another “new indication of Israeli deviation and arrogance,” while also linking them to Prime Minister Benjamin Netanyahu’s alleged endorsement of “greater Israel.”

Following the announcement on Wednesday, Smotrich held a press conference in Ma’aleh Adumim the next day, doubling down on his statement that the plan was meant to destroy the idea of a Palestinian state.

He also claimed that he had the backing of Netanyahu, who has not yet officially commented on the plan.

“Judea and Samaria are an inseparable part of our land,” said Smotrich, “I thank the Prime Minister – with whom I have a sharp disagreement regarding the destruction of Hamas – but when it comes to Judea and Samaria, he allows me to carry out the revolution we’ve been implementing over the past two years.”

“The time has come to fully apply sovereignty in Judea and Samaria, to remove the idea of partitioning the land from the agenda once and for all, and to ensure that by September, the hypocritical European leaders will have nothing left to recognize. Jerusalem is our eternal, indivisible capital.”

“Our future does not depend on the nations – it depends on the Jewish people. I believe we are very close to a historic declaration of sovereignty in Judea and Samaria,” said Smotrich, who also serves as a minister in the Defense Ministry.

Turning to the international community, he declared, “Whoever tries to recognize a Palestinian state will receive an answer from us on the ground. Not with documents or declarations – but with facts: homes, neighborhoods, roads, and more Jewish families building their lives.”

“They will speak of the false Palestinian dream – and we will continue to build a Jewish reality. This is a reality that finally buries the idea of a Palestinian state, with nothing [left] to recognize.”

The All Israel News Staff is a team of journalists in Israel.

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