European leaders have called on Israel to withdraw plans for a major settlement project in the occupied West Bank, warning that the development could undermine the prospects for a future Palestinian State.
France, Germany, Italy, the Netherlands, the United Kingdom, Norway and Canada issued a joint statement on August 20 after Israeli authorities opened tenders for more than 1,200 housing units in the E1 area, east of Jerusalem.
Israel’s Construction and Housing Ministry published the tender on August 18, covering seven residential compounds and 1,234 units, according to the Israeli anti-settlement group Peace Now. Bids close on October 19, days before the Israeli parliamentary election of October 27.
The seven leaders called the decision “unacceptable” and urged the Israeli Government to “retract these plans immediately”. They said the move was of greater concern given settler violence in the West Bank and restrictions on the Palestinian economy.
They also warned businesses not to bid for the construction tenders, citing legal and reputational risks and the possibility of involvement in what the seven governments describe as serious breaches of international law.
The E1 project is intended to establish 1,234 homes, part of a wider plan for 3,401 units, in an area between East Jerusalem and the Israeli settlement of Ma’ale Adumim. Israeli authorities approved the broader development plan in August 2025.
The site covers about 12 square kilometres and remains subject to a legal challenge before the Jerusalem District Court brought by Palestinian Bedouin communities and Israeli campaign groups.
European governments and international organisations have repeatedly warned that construction in E1 could disrupt the territorial contiguity of the West Bank and make the establishment of a geographically viable Palestinian State more difficult.
UN Secretary-General António Guterres has described the project as an “existential threat” to the two-state solution. His spokesman Stéphane Dujarric said on August 19 that Guterres was “deeply alarmed” by the new tender.
Belgian foreign minister Maxime Prévot also criticised the decision on August 20, describing the tenders as “unacceptable” and saying the project would seriously undermine the viability of a two-state solution.
The latest statement follows months of growing European criticism of Israeli settlement expansion.
At its meeting of June 18-19 the European Council urged Israel to reverse the expansion of settlements, including in E1, and stated that Israeli settlements in the West Bank are illegal under international law. It also took note of the European Commission’s intention to present options on trade with the settlements before the Foreign Affairs Council of July 13.
The warning to companies came in a separate joint statement of May 22, signed by 12 leaders and the EU, which said businesses should not bid for E1 construction tenders.
The European Union’s position is based in part on the International Court of Justice’s July 19, 2024 advisory opinion, which found Israel’s continued presence in the occupied Palestinian territory to be unlawful and called for an end to settlement activity.
Member states have yet to convert that position into measures. At the Foreign Affairs Council of July 13, ministers examined a Commission options paper setting out an import licensing regime, prohibitive tariffs or a ban on settlement goods, and agreed on none of them.
“The option that got the most support was banning the trade with illegal settlements,” EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said after that meeting.
The Council did adopt sanctions on May 28 against four entities and three individuals under the EU global human rights sanctions regime, targeting those held responsible for abuses in the West Bank.
Israel has rejected the criticism. Foreign Minister Gideon Sa’ar dismissed British Foreign Secretary Ed Miliband’s demand to halt the project, rejecting what he called the patronising tone of the British statement and arguing that Jewish people have the right to live throughout the Land of Israel.
Sa’ar said the British Government’s decision to damage relations between the two countries was regrettable and that Israel would defend “its rights, its interests and its people”.
The E1 development has previously been delayed amid international pressure. Its advancement now comes as European governments are increasingly warning that settlement expansion, alongside violence by Israeli settlers and restrictions affecting the Palestinian economy, is further complicating efforts towards a political settlement.
Israeli broadcaster Channel 13 has reported, citing two Western diplomats, that the EU has drawn up a list of initial measures should construction begin. The European Commission has not confirmed the report.
I reject outright the statement of the UK Foreign Secretary and the patronising tone of his words.
The Jewish people have the right to live throughout the Land of Israel, just as the British have the right to live in London and throughout the United Kingdom. More than a century… https://t.co/eCazg1CU7A
— Gideon Sa'ar | גדעון סער (@gidonsaar) August 20, 2026
