“The plan is the ‘final nail in the coffin’ for the concept of a Palestinian state,” Finance Minister Bezalel Smotrich remarked.

Bezalel Smotrich attends a press conference at the Finance Ministry in Jerusalem, August 6, 2025
(photo credit: YONATAN SINDEL/FLASH90)

Finance Minister Bezalel Smotrich announced that he approved the new E1 settlement plan, Israeli media reported on Wednesday night.

“The plan will bury the idea of a Palestinian state,” he was quoted as saying.

Smotrich revealed that he would hold a press conference on Thursday, accompanied by Yesha Council Chairman Israel Ganz and Ma’aleh Adumim Mayor Guy Yifrach, to further present the plan, Ynet reported.

The plan calls for the construction of 3,401 new housing units in Ma’aleh Adumim, located in the West Bank.

The organization Peace Now previously called the plan a “death blow to the two-state solution,” because it calls for effectively splitting the West Bank into two parts. This would prevent the development of the metropolitan area between Ramallah, East Jerusalem, and Bethlehem.

An aeriel view of the Israeli city of Ma’ale Adumim, in the West Bank, taken April 2023 (credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)

No official confirmation on the plan’s approval

Ynet added that, although Smotrich’s announcement was made public, there has been no official confirmation regarding the approval of the plan. The Israeli publication noted that previous housing projects, which were heavily promoted at launch, have been delayed for years.

However, Smotrich stated that this plan will move forward, since it is the ‘final nail in the coffin’ for the concept of a Palestinian state. 

“From the Palestinian perspective and that of the international community, this is a critical area. Without it, the establishment of a Palestinian state with East Jerusalem as its capital is simply impossible,” he added. 

Smotrich continued saying that the plan began with the foundation of the current government. 

“The approval of construction in the E1 area undermines the idea of a Palestinian state and is part of the broader steps we are taking as part of our de facto sovereignty plan, which began with the formation of this government. After decades of international pressure and freezing of projects, we are defying conventions and cementing the connection between Ma’aleh Adumim and Jerusalem.”

While the plan has yet to receive formal approval, it has been met with enthusiasm in the Binyamin and Ma’aleh Adumim area. Ganz, head of the Binyamin Regional Council, hailed it as “a historic achievement for the settlement movement, laying the groundwork for the eventual implementation of sovereignty.”

Ma’aleh Adumim Mayor Yifrach also expressed his strong support.

“Palestinians have tried to undermine this area through illegal construction, but the creation of this new neighborhood will thwart their efforts.”

As reported by The Jerusalem Post