Israeli finance minister approves controversial Gaza settlement plan

TEL AVIV: Israeli far-right Finance Minister Bezalel Smotrich gave the green light to a contentious plan overnight to build a new settlement that could sever East Jerusalem from the West Bank. This move, according to Smotrich’s office, would effectively eliminate the prospect of a Palestinian state. It will also risk future peace efforts.

The fate of the plan, which aims to revive the long-dormant E1 settlement project, remains unclear, as it is uncertain whether Prime Minister Benjamin Netanyahu supports it. The initiative has drawn widespread condemnation, with critics arguing it would permanently divide the West Bank and ignite global backlash.

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Smotrich’s spokesperson announced in a statement titled “Burying the Idea of a Palestinian State” that the minister would hold a press conference later today to elaborate on the proposal. The plan includes the construction of 3,401 housing units for Israeli settlers, strategically positioned between an existing settlement in the West Bank and Jerusalem.

Construction in the area had been on hold since 2012 due to strong opposition from the United States, European nations, and other global powers, who viewed it as a major obstacle to any potential peace agreement with the Palestinians.

While there has been no official comment from Netanyahu or other Israeli officials, Smotrich’s political fortunes have waned in recent months. Polls suggest his party would not secure a single seat in a parliamentary election if it were held today.

The controversial E1 project is intended to link the Maale Adumim settlement in the West Bank with Jerusalem. Most of the international community regards Israeli settlements in the West Bank, as well as Israel’s military occupation of the region since 1967, as illegal.

The organisation Peace Now, which monitors settlement activity, reported that Israel’s Housing Ministry had approved the construction of 3,300 homes in Maale Adumim as part of the E1 plan.

“This project is catastrophic for Israel’s future and any hope for a peaceful two-state solution,” Peace Now stated. “We are on the brink of disaster, and the government is recklessly pushing us forward.”

The group noted that additional approvals, including from Israel’s High Planning Council, are required before construction can begin. However, if the plan advances, infrastructure development could start within months, with homebuilding possibly commencing in about a year.

Opponents of the E1 project argue that it would fragment the West Bank, isolate East Jerusalem – which Palestinians envision as their capital – and create insurmountable barriers to a contiguous Palestinian state.

In a sign of growing international concern, Britain, Canada, Australia, and New Zealand imposed sanctions on Smotrich and another far-right minister in June, accusing them of inciting violence against Palestinians in the West Bank.

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These nations, along with others, have called on Israel to halt its settlement expansion. Human rights organisations report that settler violence and settlement construction have surged in the West Bank during Israel’s ongoing military operations in Gaza over the past 22 months.