Portugal Says Israeli Settlement Expansion Undermines Palestinian State
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Settlements Construction in Palestine, 2009. File photo. |
LISBON — September 14, 2026
Portugal's foreign minister said Israeli settlement expansion and economic pressure in the occupied West Bank and East Jerusalem were weakening prospects for the creation of a viable Palestinian state. Foreign Minister Paulo Rangel made the comments after meeting Palestinian Foreign Minister Varsen Aghabekian Shahin in Lisbon.
Rangel singled out Israel's planned development in the E1 area of the West Bank, calling it highly damaging because, in his view, it could divide the territory and further separate East Jerusalem from Palestinian areas. He said the development was incompatible with a two-state solution, under which Israel and a Palestinian state would exist alongside each other.
Rangel also criticized Israel's withholding of Palestinian tax revenues, saying the policy was placing severe pressure on the finances of the Palestinian Authority. He said the financial restrictions were making it difficult for the Palestinian economy and public institutions to function.
The Palestinian Authority relies heavily on tax revenues collected by Israel on its behalf. Disputes over the transfer of those funds have repeatedly created financial pressure on the Palestinian administration.
Rangel also pointed to the closure of Christian schools in East Jerusalem as another sign of what he described as deteriorating conditions in the city. He said Portugal viewed a two-state arrangement as the way to establish peaceful coexistence between Israelis and Palestinians.
Portugal formally recognized the State of Palestine in September 2025, saying the decision was intended to support efforts toward a two-state solution. The Portuguese government also said at the time that recognition did not remove Israel's right to exist or its security concerns.
The latest Portuguese comments come as international pressure over Israeli settlements in the West Bank continues. Israel has faced criticism from several governments over settlement activity, while Israeli authorities have defended their policies and rejected efforts they view as external pressure over the status of the territory.
The E1 area has particular significance because of its location between East Jerusalem and the large Israeli settlement of Maale Adumim. Palestinians and governments supporting a two-state solution have long argued that extensive development there could make the creation of a geographically connected Palestinian state more difficult.
Portugal's position comes amid wider diplomatic disagreements over Israeli settlement-related trade measures. Israel said last week that it was closing Britain's consulate in East Jerusalem after Britain, France and Canada announced plans to restrict imports from Israeli settlements in the West Bank.
Rangel's comments reflect Portugal's continued support for Palestinian statehood and a negotiated two-state framework. The statement did not announce any new Portuguese sanctions or other measures against Israel.
The dispute over settlements, Palestinian tax revenues and East Jerusalem remains part of broader international efforts to determine the political future of the West Bank and the prospects for a lasting Israeli-Palestinian settlement.
