Israel to advance E1 settlement project that would ‘kill the Palestinian state’
Israel is poised to move forward with a highly contentious settlement project east of Jerusalem that would effectively divide the occupied West Bank in two, according to Finance Minister Bezalel Smotrich.
“This is how we effectively kill the Palestinian state,” Smotrich, a far-right minister who also oversees settlement activity and civilian affairs in the West Bank, said during a conference on Tuesday.
The project, known as the E1 plan, would involve the construction of 3,412 housing units for Israeli settlers on occupied Palestinian land.
It aims to connect the settlements of Kfar Adumim and Maale Adumim with occupied East Jerusalem, cutting off Palestinian communities from one another and significantly disrupting territorial continuity.
The plan would isolate East Jerusalem from the West Bank, forcing Palestinians to take lengthy detours to travel between cities and towns, while enabling further expansion of Israeli settlements.
New MEE newsletter: Jerusalem Dispatch
Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters
Although the E1 construction plan dates back to the 1990s, its implementation has repeatedly been delayed due to strong international opposition.
Both the United States and the European Union have warned successive Israeli governments against advancing the plan, citing its potentially devastating impact on prospects for a two-state solution.
Smotrich said the government will advance the plans in the coming months, though he did not give a specific date.
'The plan makes the establishment of a viable Palestinian state impossible'
- Ismail Musalmani, Palestinian analyst
Xavier Abu Eid, a communications advisor with the Palestine Liberation Organisation’s negotiations department, warned that Smotrich’s remarks should not be dismissed as fringe rhetoric.
He noted that the minister’s stance reflects a broader consensus within Israeli politics.
“Smotrich is not a marginal voice,” Abu Eid told Middle East Eye.
“When it comes to Palestine, his goal of denying Palestinian freedom aligns with the mainstream among Zionist parties. And when it comes to racism more broadly, his role is essential in keeping Prime Minister Benjamin Netanyahu’s coalition intact.”
Abu Eid said Smotrich’s previous statements align with broader Israeli policies, including those he described as “ethnic cleansing and occupation in Gaza, targeting West Bank refugee camps and moving for annexation in the West Bank”.
Preventing a Palestinian state
Speaking at a settlement conference organised by the right-wing Makor Rishon newspaper in the Ofra settlement, Smotrich reaffirmed his commitment to the project.
He said the government had already approved 15,000 settlement units in 2024 and is investing 7bn shekels (approximately $1.9bn) in new roads across the West Bank to facilitate further settlement growth.
In March, Israel’s political-security cabinet approved a separate road for Palestinians south of the E1 area, linking the northern and southern West Bank.
This road is seen as a preparatory step to expand settlement construction in the area.
Under the plan, Palestinian traffic would be rerouted away from Route 1 - the main highway connecting Jerusalem to Maale Adumim - reserving it primarily for Israeli use.
These steps are part of an Israeli policy to “impose a new irreversible settler reality on the ground”, according to Ismail Musalmani, a Palestinian analyst on Israeli affairs.
“The plan makes the establishment of a viable Palestinian state impossible,” Musalmani told MEE.
“This is because it will lead to the fragmentation of Palestinian territories into isolated ‘Bantustans’ and prevent Palestinian sovereignty over external borders or natural resources,” he added, referring to the Black-only ghettos created by apartheid South Africa.
Creating facts on the ground
Smotrich claimed that the initiatives would significantly boost the Israeli population in the West Bank: “This is how we bring in a million settlers.”
Around 700,000 Israeli settlers live in roughly 300 illegal settlements across the West Bank and East Jerusalem, all of which have been built since Israel captured the territories in the 1967 Middle East war.
Under international law, settlement construction in an occupied territory is illegal.
The minister also vowed that “there will be sovereignty during this term”, referring to the formal annexation of parts of the West Bank under the current government led by Netanyahu.
But while reaffirming his intention to push for annexation, he acknowledged that political recognition alone is insufficient.
“If Israel approves annexation and is recognised by US President Donald Trump, and then a Democratic president comes and revokes that recognition, it will be meaningless,” he said.
“Nevertheless, actual sovereignty will be realised on the ground.”
According to Musalmani, these projects essentially aim to redefine the "solution" to the conflict as solely security- and administration-based, not sovereignty-based.
“These policies are moving forward and require a unified Palestinian response, serious international pressure, and innovative resistance strategies,” he said.
“That is if there is genuine will to keep the dream of a Palestinian state alive.”
Middle East Eye delivers independent and unrivalled coverage and analysis of the Middle East, North Africa and beyond. To learn more about republishing this content and the associated fees, please fill out this form. More about MEE can be found here.
