Israel has given the final green light to a long-delayed settlement project in the E1 area of the West Bank, territory that Palestinians consider part of their future state. The decision was announced by Finance Minister Bezalel Smotrich and confirmed by a Defense Ministry committee, reports "Reuters".
The plan, which envisages the construction of about 3,400 housing units near Maale Adumim, would cut the West Bank and isolate East Jerusalem from the rest of the Palestinian territories. The Palestinian Foreign Ministry strongly condemned the decision, saying it undermines the prospect of a two-state solution.
Smotrich, himself a settler in such a settlement, called his plan "Burying the idea of a Palestinian state". Israel has frozen construction plans there since 2012 due to objections from the United States, European allies and other world powers, who saw the project as a threat to any future peace agreement with the Palestinians.
The German government also reacted, stressing that settlement activity violates international law and hinders the achievement of peace through negotiations. Most of the international community considers Israeli settlements in the West Bank to be illegal, although Israel rejects these claims, citing historical and religious arguments.
According to the organization "Peace Now", construction of infrastructure could begin within months, and housing construction within a year. The decision comes as some of Israel's Western allies are considering recognizing a Palestinian state at the upcoming UN General Assembly session in September.
Most world powers say settlement expansion undermines the viability of the two-state solution by fragmenting territory that Palestinians seek as part of a future independent state.
The two-state plan envisions a Palestinian state in East Jerusalem, the West Bank and Gaza, existing side by side with Israel, which captured all three territories in the 1967 Middle East war.
Israel cites historical and biblical ties to the area and says the settlements provide strategic depth and security, and the West Bank is "contested", not "occupied".