EU demands Israel cancel planned construction near Jerusalem

European Union foreign policy chief Kaja Kallas says E1 project linking Jerusalem to Ma’ale Adumim threatens two-state solution, demands Israel cancel tenders for over 1,200 homes.

By World Israel News Staff

European Union foreign policy chief Kaja Kallas on Sunday called on Israel to withdraw a tender for more than 1,200 homes in the E1 area between Jerusalem and Ma’ale Adumim, joining a growing international campaign against the long-delayed construction project.

“The Israeli Government’s publication of a tender for the construction of over 1,200 housing units under the E1 settlement project fundamentally harms the prospect of the two-State solution,” Kallas said.

Israel’s Construction and Housing Ministry opened bidding last Tuesday for 1,234 housing units spread across seven residential compounds in E1.

The homes are part of a larger plan for 3,401 units that received final planning approval in August 2025.

Bids are due by October 19, eight days before Israel’s October 27 election.

E1 sits immediately east of Jerusalem between the capital and Ma’ale Adumim, one of the largest Israeli communities in Judea and Samaria.

Israeli supporters of the project view construction there as strategically important for linking Ma’ale Adumim more closely with Jerusalem and preventing the establishment of a Palestinian state dividing the two.

“Implementation of the E1 plan would divide the West Bank in two, isolating East Jerusalem,” Kallas said, adding that it would further undermine the viability of a two-state solution.

Kallas also reiterated the EU’s longstanding position that Israeli communities beyond the pre-1967 lines violate international law, a position Israel disputes.

“We urge the Government of Israel to withdraw the tender, halt its E1 plans as well as all other settlement expansion projects,” she said.

The EU statement followed several days of mounting international opposition to the tender.

Britain, France, Germany, Italy, the Netherlands, Canada and Norway issued a joint statement Thursday declaring Israel’s decision “unacceptable.”

“The E1 settlement will undermine the prospect of the two-state solution by driving a wedge through the West Bank,” the governments said.

The group called on Israel to immediately retract the plans and took the unusual additional step of warning private companies against participating in the tender, citing possible legal and reputational consequences.

Other governments, including Australia, New Zealand, Belgium, Sweden, Spain, Austria, Greece and Cyprus, subsequently joined the international criticism.

Britain separately summoned Israel’s chargé d’affaires after the tender was issued.

Israeli officials have rejected the pressure.

Foreign Minister Gideon Sa’ar accused Britain of adopting a “patronising” approach toward Israel and defended the right of Jews to live throughout the Land of Israel.

Finance Minister Bezalel Smotrich, one of the leading proponents of E1 construction, was similarly defiant.

“The British Mandate is over,” Smotrich said Thursday, declaring that Israel would not accept “dictates from foreign countries” or alter its policies in response to threats of sanctions.

Smotrich has made clear that preventing the creation of a Palestinian state is one of the objectives behind the E1 project.

When the larger 3,401-home plan was advanced last August, he described E1 as a direct response to foreign governments moving toward recognition of Palestinian statehood.

“This reality finally buries the idea of a Palestinian state,” Smotrich said at the time.

“Those around the world who try to recognize a Palestinian state will see our response on the ground – not with documents or declarations, but with facts: homes, roads, and Jewish families building their lives here,” he added.

Israeli governments have discussed developing E1 for decades, but construction was repeatedly delayed amid strong objections from previous US administrations and European governments.

The project moved decisively forward in August 2025, when Israeli planning authorities approved the roughly 3,400 homes. The publication of this month’s tender represents a further step toward actual construction, allowing contractors to compete for the first 1,234 units.

The United States did not express direct opposition to the tender but said that it opposes annexation of parts of Judea and Samaria.

“As the President has clearly stated, the US does not support Israel annexing the West Bank,” a State Department spokesperson said Friday.

“A stable West Bank keeps Israel secure and is in line with this Administration’s goal to achieve peace in the region,” the spokesperson added.

The tender is facing a legal challenge inside Israel.

Peace Now, Ir Amim, Bimkom and Palestinian Bedouin residents have petitioned the Jerusalem District Court against the project.

The state has been ordered to submit a detailed response to the petition by September 1.