On August 14, 2025, Israeli Finance Minister Bezalel Smotrich approved the construction of 3,401 new housing units in the E1 area of the West Bank, a move that has drawn widespread international criticism. The decision, located between Jerusalem and the settlement of Ma'ale Adumim, is seen by many nations as a significant impediment to a viable two-state solution to the Israeli-Palestinian conflict. Minister Smotrich stated that the project aims to "bury" the concept of a Palestinian state by establishing Israeli territorial continuity between Jerusalem and Ma'ale Adumim.
The international community has responded with strong disapproval. France, through its Ministry of Foreign Affairs, condemned the plan as a "grave violation of international law." The United Kingdom's Foreign Minister David Lammy called it a "flagrant breach of international law" that must be halted. The European Union's foreign policy chief, Kaja Kallas, urged Israel to desist, citing the plan's far-reaching implications for the two-state solution. Israeli watchdog group Peace Now also expressed concerns, warning that the project could render the two-state solution unviable and increase regional tensions. The United Nations has called on Israel to reverse its decision, emphasizing that Israeli settlements contravene international law.
The E1 plan has a history of international opposition, having been frozen for years due to concerns about its potential to fragment the West Bank and isolate East Jerusalem, which Palestinians envision as their future capital. The area is critical as it forms a key geographic link between Palestinian cities like Ramallah and Bethlehem. The development would necessitate lengthy detours for Palestinians, increasing travel times and restricting movement. This approval comes amid heightened international focus on the conflict and discussions about the potential recognition of a Palestinian state, signaling a significant policy shift by the Israeli government and likely intensifying regional tensions.