Israeli Prime Minister Benjamin Netanyahu has declared that there will be no Palestinian state, a stark assertion delivered during the signing of an agreement to advance a long-stalled settlement expansion in the occupied West Bank that critics say would sever key Palestinian territories and undermine prospects for a two-state solution.

The event unfolded on Thursday in the settlement of Ma'ale Adumim, east of Jerusalem, where Netanyahu signed a framework deal to accelerate the E1 project—a contentious plan covering 12 square kilometers between East Jerusalem and the existing settlement. Approved in August by Israel's Civil Administration Higher Planning Council, the initiative calls for 3,412 new housing units, infrastructure upgrades, and roads, potentially housing up to 15,000 additional residents and doubling Ma'ale Adumim's current population of about 38,000. Total investment is estimated at nearly $1 billion.

Netanyahu framed the move as essential for Israel's security and heritage, stating, "We are going to fulfill our promise that there will be no Palestinian state; this place belongs to us." He added that the project would safeguard Israel's land and double the city's population, emphasizing, "Something very big is happening here." Finance Minister Bezalel Smotrich, a far-right coalition partner, hailed it as another step toward annexing the West Bank, declaring it would "bury the idea of a Palestinian state."

The E1 zone has been frozen since 2012 and 2020 due to international pressure, particularly from the U.S. and Europe, over fears it would bisect the West Bank—isolating its northern and southern halves and cutting off East Jerusalem from Palestinian areas like Ramallah and Bethlehem. UN Secretary-General Antonio Guterres warned last month that such construction would "split the West Bank in two," threatening a contiguous Palestinian state. Most of the international community views Israeli settlements in the West Bank as illegal under international law, with human rights groups arguing the expansion entrenches the occupation and dashes hopes for peace.

The announcement arrives just days before the United Nations General Assembly in New York, where several Western nations plan to recognize Palestine as a state. French President Emmanuel Macron confirmed in July that France would proceed during the session, citing the urgency of ending the Gaza war, securing a ceasefire, releasing hostages, delivering aid, disarming Hamas, and building a viable Palestinian future. Canada followed suit, with Prime Minister Mark Carney announcing recognition contingent on Palestinian Authority elections by 2026 (excluding Hamas) and demilitarization. The UK, under Prime Minister Keir Starmer, tied its pledge to a Gaza ceasefire, settlement halt, and Israeli withdrawal, while Australia, Malta, New Zealand, and others have signaled similar intentions.

As of now, 147 UN member states recognize Palestine, but these moves from G7 nations could elevate its diplomatic status, including full embassies. Palestinian Authority spokesperson Nabil Abu Rudeineh condemned Netanyahu's words as pushing the region "towards the abyss," insisting a Palestinian state with East Jerusalem as its capital remains "inevitable." He urged more countries to recognize Palestine and held the U.S. responsible for curbing Israel's actions. Israeli opposition figures and some analysts criticized the timing, suggesting it isolates Israel amid global frustration over the Gaza conflict, now in its second year, and rising settler violence in the West Bank.

Netanyahu's stance aligns with his government's shift since the October 7, 2023, Hamas attack, prioritizing a "Greater Israel" vision over past two-state rhetoric. While Israel maintains E1 bolsters defensible borders around Jerusalem, opponents, including the EU and Qatar, see it as a barrier to negotiations. The U.S. has not yet commented, but past administrations opposed the project.