Lapid warns new settlement plans will ‘harm Israel’s standing in the world’
Centrist, left-wing MKs protest PM’s reported plan for 2,000 homes and other major construction in West Bank; Jordan envoy says building will ‘imperil’ peace treaty
Israeli politicians reacted strongly to a report Sunday night that Prime Minister Benjamin Netanyahu was in negotiations with settlement leaders to implement a massive development project in the West Bank, with Finance Minister Yair Lapid warning the move would isolate Israeli diplomatically.
Lapid — the head of the centrist Yesh Atid party and a major coalition partner — said the reported plan, which would see 2,000 new housing units in the settlements in addition to infrastructure developments, would further worsen ties with Washington.
“This plan will lead to a serious crisis in Israel-US relations and will harm Israel’s standing in the world,” Lapid wrote in a statement. He added that although he does not oppose construction in the settlement blocs, the timing “will cause harm to Israel.”
The finance minister’s remarks came a day after he acknowledged that “there is a crisis with the Americans and it must be dealt with like a crisis,” and called to improve ties.
A Channel 2 report Sunday night claimed Netanyahu is in the advanced stages of negotiations with Jewish Home lawmakers and settlement leaders to approve 2,000 new housing units in the West Bank, as well as 12 new roads, three new parks, student villages, the possible post-facto approval of illegal outposts, and refurbishing the Tomb of the Patriarchs in Hebron.
There was no immediate confirmation of the report from Netanyahu’s office or settlement officials.
The report came as Israeli and Jordanian officials marked 20 years of peace in a ceremony held in Tel Aviv, with the Jordanian ambassador to Israel warning that continued settlement expansion could endanger ties.
“All such acts are incompatible with international law and international humanitarian law and if allowed to continue, will ultimately imperil the treaty,” Walid Obeidat said Sunday, adding that efforts to change the religious status quo at the Temple Mount could also have negative consequences.
The Labor Party released a statement Sunday night condemning the reported plan, and calling on Lapid and Justice Minister Tzipi Livni to block the move.

“The prime minister is selling out the political interests of the state of Israel in exchange for a few more months as prime minister,” the Labor Party wrote in a communique. “If this is Netanyahu’s solution to the acute political crisis, or the issue of the high cost of living in Israel, then he has completely lost his way.”
Jewish Home party lawmakers and settlement officials have accused Netanyahu lately of imposing a de-facto freeze on construction in the West Bank, with Uri Ariel threatening consequences if it was not lifted.
A diplomatic source told Channel 2 the move was likely to bring harsh international condemnation.