Israel’s plans to open tenders for the construction of approximately 1,200 settlement homes in a strategically significant part of the occupied West Bank have drawn fresh criticism from major Western powers. In a joint statement, the UK, France, Germany, Italy, and Canada called the decision ‘unacceptable’ and urged Israel to ‘retract the plans immediately.’

International Law and Two-State Solution at Risk

All settlements are considered illegal under international law. Under international pressure, Israel had previously held off for decades on plans to build in E1, an area east of Jerusalem. Many of its allies and Palestinians have argued that this development would severely damage hopes for a two-state solution, effectively dividing the West Bank and isolating east Jerusalem.

‘At a time of grave instability in the West Bank with historic levels of violence by settlers against civilians, and serious restrictions on the Palestinian economy, this decision is even more concerning,’ the statement from the European allies and Canada published on Thursday said. ‘Not only will they [the plans] take us further from peace, but they further undermine Israel’s international standing,’ the statement added.

Global Leaders and UN Raise Concerns

In a separate statement, the UN secretary general also described the E1 plan as an ‘existential threat’ to a contiguous Palestinian state. Belgium’s foreign minister echoed these concerns. UK Foreign Secretary Ed Miliband’s condemnation earlier on Thursday drew ‘outright’ rejection by the Israeli foreign minister.

Despite an Israeli court challenge to the plans by Bedouin Palestinians living in the area and Israeli peace groups, on Wednesday the Israeli housing ministry issued a tender for 1,234 of the 3,401 housing units approved by the Israeli government last August. It covers about 12 sq km (4.6 sq miles) between East Jerusalem and the settlement of Maale Adumim.

Political and Strategic Implications

At the time of their revealing, Finance Minister Bezalel Smotrich,an ultranationalist and settler,said the idea of a Palestinian state was ‘being erased.’ The deadline for bids is 19 October, just days before Israel’s general election on 27 October, making it much harder for any future government to overturn any tenders issued.

Israel has built about 160 settlements housing 700,000 Jews since it occupied the West Bank and East Jerusalem—land Palestinians want, along with Gaza, for a hoped-for future state,during the 1967 Middle East war. An estimated 3.3 million Palestinians live alongside them.

Despite the fierce international opposition, successive Israeli governments have allowed settlements to grow. However, expansion has risen sharply since Prime Minister Benjamin Netanyahu returned to power in late 2022 at the head of a right-wing, pro-settler coalition, as well as the start of the Gaza war, triggered by Hamas’s 7 October 2023 attack on Israel.

Opponents of the E1 project have warned that it would effectively block the establishment of a Palestinian state because it would cut off the north of the West Bank from the south and prevent the development in the center of a contiguous Palestinian urban area connecting Ramallah, East Jerusalem, and Bethlehem.