The European Union on Friday renewed its call for Israel to refrain from expanding settlements in the occupied West Bank, stating that this undermines the prospects for a two-state solution.

A spokesperson for the European External Action Service said in a statement: "The European Union renews its call on Israel to refrain from any further expansion of settlements, legalization of outposts, land confiscation, house demolitions, evictions, or any other unilateral actions that would undermine the prospects for a two-state solution."

Earlier this week, Israel's security cabinet approved a budget of 1.3 billion shekels ($427.8 million) to establish 34 new settlements in the West Bank.

The United Nations, Palestinians, and most countries around the world consider Israeli settlements illegal under international law, a position Israel rejects. These settlements are also seen as one of the main obstacles to achieving peace.

Funding plan to establish new settlements

In June, the Axios website reported that the Israeli government had devised a plan to finance the establishment of 61 new settlements in the occupied West Bank, expected to significantly alter the map of the West Bank. According to a draft Israeli government resolution, Israel would immediately begin constructing temporary buildings to change the reality on the ground.

When it was formed four years ago, the Israeli government included in its political platform a clause stating its intent to work toward annexing the West Bank.

By approving the allocation of funds for the establishment of 61 new settlements in the West Bank, the Israeli government has completed its plan to create settlement facts on the ground that prevent any future political solution involving the establishment of a contiguous Palestinian state.

On July 23, 2025, the Israeli parliament (Knesset) voted by a majority in favor of a declaration calling on the government to "impose Israeli sovereignty over the occupied West Bank."

Official Israeli and Palestinian statistics show that the current Israeli government has increased and expanded land confiscation and settlement expansion to an unprecedented extent since the 1967 occupation.

The government decided to establish 103 new settlements, of which 14 have been built on the ground, raising the number of existing settlements from 178 to 192. During its tenure, hundreds of new outposts have been established, bringing the total number of existing outposts to 365, which can be converted into full settlements.