Understanding the Controversial Settlement Plan in the West Bank

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Key Points

Israel has authorized the construction of thousands of units in controversial settlements within the West Bank.
The initiative has met with global criticism, being labeled as a breach of international law.
Israel argues that the plan undermines the possibility of a Palestinian state.

Israel’s decision to approve a contentious settlement plan in the West Bank has triggered worldwide criticism, including from Australia, and might jeopardize the future of a Palestinian state.

The long-standing plan, referred to as East1 (E1), was revived by Israel’s far-right finance minister, Bezalel Smotrich, during a press conference last week. He claimed the plan effectively nullifies the potential for a Palestinian state, asserting there’s no entity or governing body to acknowledge.

Even amidst international criticism highlighting the plan as a breach of international law, Israel went ahead with approving the controversial project on Thursday.

The United Nations sees these settlements as illegal under international law, citing the Geneva Convention, which prohibits an occupying nation from transferring its civilians to occupied territories.

So, what exactly is E1, and why does it pose a threat to Palestinian statehood?

Here’s an overview.

What is the E1 plan?

East1 (E1) refers to a stretch of land approximately 12 square km in size on the outskirts of Jerusalem in the West Bank.

The E1 area is located next to Ma’ale Adumim, home to approximately 40,000 Israelis and ranking as the third most populated Israeli settlement in the West Bank. Although international law deems Ma’ale Adumim illegal, Israel contests this classification.

The E1 settlement plan would bisect the occupied West Bank and cut it off from East Jerusalem. Source: SBS News

E1 proposes building more than 3,400 units on the land. The Israel-based NGO Peace Now, which monitors settlement activity in the West Bank, said last week that infrastructure work at E1 could begin within a few months, and housing construction within a year.

A United Nations report found that Israel had expanded its presence in the West Bank since October 2023, with around 700,000 Israeli settlers occupying the territory.

The West Bank and East Jerusalem are also home to 2.7 million Palestinians.

How did the plan originate?

The E1 settlement initiative was initially proposed in 1994 under former Israeli Prime Minister Yitzhak Rabin. Over the years, various efforts to develop settlements in this area have faced numerous setbacks.

Map showing Israel, Gaza and the West Bank.

Israel’s approval of the E1 settlement has attracted strong criticism from the United Nations, Western allies, and Palestinians, who see it as a violation of international law and a threat to the two-state solution. Source: SBS News

In 2005, construction of E1 was paused after then-US president George Bush intervened, saying the plan was at odds with American foreign policy.

The plan was revived by Israeli Prime Minister Benjamin Netanyahu in 2012, one day after the UN voted to extend non-member status to the State of Palestine. International condemnation put the plans on hold yet again.

Following the violent clashes in the West Bank in 2023, Netanyahu revisited the plans. However, pressure from US Secretary of State Antony Blinken during President Joe Biden’s administration led to their suspension at that time.

A man in a dark suit and white shirt holding a phone to his ear.

Israeli finance minister Bezalel Smotrich has now announced the approval of the latest push for the E1 settlement, which is deemed unlawful under international law. Source: AAP / Gil Cohen-Magen

Who is behind the latest push?

This time, the plan has been driven by finance minister Bezalel Smotrich.

Smotrich is head of the Religious Zionism party, which holds 14 seats in the Knesset, its legislative chamber. He is known for his ultranationalist stance and said he believes that the West Bank should belong to Israel.

The sanctions involved travel bans and financial freezes against both Smotrich and national security minister Itamar Ben-Gvir.

In response, Smotrich told the Jerusalem Post that the five countries had made a “grave mistake”.

Why is it considered illegal?

Israel annexed East Jerusalem in a move not recognised by most countries, but has not formally extended sovereignty over the West Bank.

The ruling from the UN’s highest court, which is non-binding, found that Israel is obligated to bring an end to its presence in the territory.

Israel disputes this, citing historical and biblical ties to the area it calls Judea and Samaria, and said the settlements provide strategic depth and security.

Most of the global community considers all settlements illegal under international law.

How does E1 ‘bury’ a possible two-state solution?

The longstanding concept of a two-state solution imagines a Palestinian state consisting of East Jerusalem, the West Bank, and Gaza existing alongside Israel.

The two cities are 22km apart, but Palestinians who travel between the two cities must use a detour that involves Israeli checkpoints, according to B’Tselem, an NGO that monitors restrictions of Palestinians’ movements in the West Bank.

The Ramallah-based Palestinian Authority (PA) said that E1 would entrench the division of the occupied West Bank into isolated areas “disconnected from one another, turning them into something akin to real prisons, where movement is only possible through Israeli checkpoints and under the terror of armed settler militias”.

“This undermines the chances of implementing the two-state solution, establishing a Palestinian state on the ground, and fragments its geographic and demographic unity,” the PA’s foreign ministry said in a statement.

Smotrich has said the construction plan is a deliberate attempt to block a two-state solution. In a statement, he said that E1 is finally delivering what has been promised for years: “The Palestinian state is being erased from the table, not with slogans but with actions.”

How has the international community responded?

A joint statement condemning the plan was signed by the foreign ministers of 21 countries: Australia, Belgium, Canada, Denmark, Estonia, Finland, France, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Portugal, Slovenia, Spain, Sweden and the United Kingdom.

The statement, signed by Australia’s Foreign Minister Penny Wong and published late on Thursday, called any E1 settlement “unacceptable and a violation of international law”.

“It risks undermining security and fuels further violence and instability, taking us further away from peace,” the statement said.

A man in a dark suit holds a large sign with a map, behind him is sand and trees.

Israeli finance minister Bezalel Smotrich holds a map that shows the E1 settlement project during a press conference announcing a renewed push for the settlement in the Israeli-occupied West Bank. Source: AAP / Ohad Zwigenberg

“The government of Israel still has an opportunity to stop the E1 plan going any further. We encourage them to urgently retract this plan.”

US President Donald Trump has not yet commented publicly on the plans. In the press conference announcing the plan’s approval, Smotrich was asked if Netanyahu and Trump had agreed to the plan.

“Of course,” Smotrich replied.

— With additional reporting by Reuters and Agence France-Presse.