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Israeli Finance Minister Vows to ‘Bury’ Palestinian Statehood with New West Bank Settlement

August 14, 2025
Reading Time: 6 mins read
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Israeli Finance Minister Vows to ‘Bury’ Palestinian Statehood with New West Bank Settlement

Photo: Reuters

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Bezalel Smotrich, Israel’s far-right finance minister, has announced plans to begin construction of a new Israeli settlement in the occupied West Bank—one that would effectively divide the territory and sever East Jerusalem from its surrounding Palestinian areas.

Smotrich’s office declared the move “the burial of the idea of a Palestinian state.”

“We respond to those pushing for recognition of a Palestinian state not with documents or declarations, but with facts on the ground—homes and neighborhoods,” Smotrich said.

In a statement titled “Burying the Idea of a Palestinian State,” his spokesperson confirmed that the minister has approved a controversial plan to build 3,401 housing units for Israeli settlers between an existing West Bank settlement and East Jerusalem. The project is part of the long-stalled “E1 Plan,” widely condemned by the international community for its strategic intent to fragment Palestinian territories.

Speaking to Reuters, Smotrich said construction would begin next Wednesday.

The Palestinian Ministry of Foreign Affairs denounced the plan as a continuation of “genocide, forced displacement, and annexation.” Israel has long rejected such accusations, insisting its actions are acts of self-defense.

At a press conference in the Ma’ale Adumim settlement, Smotrich claimed the project had the backing of Prime Minister Benjamin Netanyahu and former U.S. President Donald Trump. Critics argue the E1 Plan is designed to break geographic continuity between the northern and southern parts of the West Bank, making the creation of a viable Palestinian state nearly impossible.

Israel previously halted construction in the area in 2012 and again in 2020 due to strong opposition from the U.S. and European allies.

Palestinians fear the rapid expansion of Israeli settlements—especially since the outbreak of war with Hamas in 2023—will extinguish any remaining prospects for an independent Palestinian state.

Hamas condemned the plan as part of Israel’s “colonial and extremist” agenda and called on Palestinians to resist it. Jordan’s Foreign Ministry also slammed the move as a blatant violation of international law.

Palestinians, who have suffered more than 61,000 deaths since the war began, worry that these developments are a prelude to mass displacement.

Roughly 700,000 Israeli settlers now live in the West Bank and East Jerusalem, alongside 2.7 million Palestinians. Israel has unilaterally annexed East Jerusalem, a move not recognized by most countries.

The two-state solution envisions an independent Palestinian state encompassing the West Bank, East Jerusalem, and Gaza. But as settlement construction escalates, that vision is growing increasingly distant.

In June, the United Kingdom, Canada, Australia, and New Zealand imposed sanctions on Smotrich over his role in supporting settlement expansion.

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