By: Chaya Abecassis – Jewish Voice News

Israeli Finance Minister Bezalel Smotrich sharply criticized Prime Minister Benjamin Netanyahu on Thursday over reports that the United States is taking steps to indirectly advance recognition of a Palestinian state as part of its ongoing diplomatic framework tied to normalization between Israel and Saudi Arabia, according to a report on Sunday at Israel National News.

Smotrich, who has been one of the most vocal opponents of any two-state proposal, issued a stern public statement accusing Netanyahu of failing to respond decisively to recent international moves recognizing Palestinian statehood and warning that the U.S.-backed initiative could seriously endanger Israel’s sovereignty and security.

In his statement, Smotrich recalled Netanyahu’s pledge two months earlier to respond “firmly” to European countries that had unilaterally recognized a Palestinian state — a promise, he said, that remains unfulfilled.

“Mr. Prime Minister, two months ago, immediately after several countries announced their unilateral recognition of a Palestinian state, you pledged you would respond firmly on the matter as soon as you returned from the United States,” Smotrich declared, as reported by Israel National News.

“Since then, as noted, two months have passed in which you chose silence and a diplomatic disgrace,” he continued. “The deterioration we see now on this matter is dangerous and is your responsibility and stems from your silence.”

Smotrich urged Netanyahu to immediately issue a formal and categorical statement rejecting any steps — direct or indirect — toward Palestinian statehood. “Form immediately an appropriate and decisive response that will make clear to the entire world: no Palestinian state will ever be established on our ancestral lands,” he said.

According to the information provided in the Israel National News report, Smotrich’s remarks reflect mounting frustration among members of Israel’s nationalist and right-wing coalition, many of whom view the Biden administration’s diplomatic overtures toward the Palestinian Authority (PA) as a form of backchannel pressure on Jerusalem.

Echoing Smotrich’s criticism, National Security Minister Itamar Ben-Gvir also issued a defiant response to the reported U.S. initiative. Speaking to the media, Ben-Gvir denounced the very notion of a Palestinian state, describing it as a “reward for terror” and rejecting the historical legitimacy of Palestinian national identity.

“There is no such thing as ‘a Palestinian people,’” Ben-Gvir asserted, according to Israel National News. “This is an invention that has no historical, archaeological, or factual basis. A collection of immigrants from Arab countries to the Land of Israel are not a people. And certainly, they do not deserve a reward for the terror, murder, and atrocities they sowed everywhere, and especially from Gaza — the place where they received self-rule.”

He continued, “The only real solution in Gaza is the encouragement of voluntary migration, and certainly not a state that rewards terror, which would be a base for continued terror. Otzma Yehudit will not be part of any government that agrees to that.”

Ben-Gvir called on Netanyahu to publicly clarify Israel’s position. “I call on the Prime Minister to clarify that the State of Israel will not allow the establishment of a Palestinian state in any form,” he said.

According to the information contained in the Israel National News report, the remarks from both ministers signal deep divisions within Israel’s ruling coalition regarding the handling of ongoing U.S.-brokered diplomatic efforts and fears that Washington’s current proposal may effectively lay the groundwork for a future Palestinian entity.

As Israel National News reported, the controversy follows earlier recommendations by senior Israeli security officials urging the government to impose personal sanctions on senior Palestinian Authority figures in response to recent international recognition of Palestinian statehood.

Among the measures proposed were restrictions on the movement of high-ranking PA officials in Judea and Samaria, as well as tighter controls at the Allenby Bridge crossing, which connects the Palestinian territories to Jordan.

Under the current arrangements, senior PA figures travel freely across the region in secured convoys with Israel Security Agency (ISA) escorts. The new proposal would sharply limit that freedom and subject such officials to enhanced inspection and travel restrictions.

Officials also suggested imposing economic sanctions targeting the business interests of top PA leaders and their family members. According to the recommendations cited in the Israel National News report, this would include disrupting revenue streams derived from import and export ventures that enrich senior PA officials through their relatives’ commercial operations abroad.

Despite the recommendations, Netanyahu’s government has not yet acted, drawing further criticism from coalition partners such as Smotrich, who view the lack of response as a sign of weakness at a time of mounting diplomatic pressure on Israel.

The debate intensified after Israel National News published details of a draft proposal prepared by the U.S. administration for the United Nations Security Council, which reportedly contains language promoting concrete steps toward the establishment of a Palestinian state.

According to the draft cited in the report, the proposal envisions the creation of a multinational stabilization force in Gaza at the conclusion of the ongoing war. This force, operating in coordination with Israel and Egypt, would be tasked with maintaining security, preventing the reemergence of Hamas, and facilitating the reconstruction of the Gaza Strip.

The text further stipulates that, once the Palestinian Authority’s reform plan is implemented, “conditions may exist for a credible path to self-determination and to the existence of a Palestinian state.”

As the Israel National News report detailed, the U.S. draft also calls for a U.S.-led dialogue between Israel and the Palestinians aimed at achieving “a political horizon for peaceful and prosperous coexistence.”

Additionally, the proposal outlines provisions for the creation and training of a Palestinian Arab police force, which would operate under the supervision of the multinational coalition and be responsible for border security. This force would be vetted and monitored to ensure compliance with international standards and coordination with Israel and Egypt.

Critics within Israel’s government have described these steps as a dangerous precedent that could lead to the gradual erosion of Israel’s military and administrative control over Gaza and parts of Judea and Samaria.

According to the report at Israel National News, Smotrich and Ben-Gvir’s public rebukes are the latest signs of growing friction within Israel’s governing coalition over how to respond to mounting U.S. diplomatic initiatives. Both ministers have demanded that Netanyahu take an unequivocal stance rejecting any reference to a Palestinian state in discussions with Washington or the United Nations.

Right-wing members of the coalition have also urged Netanyahu to communicate clearly to the Biden administration that any recognition of Palestinian sovereignty, even symbolic, would constitute a red line for Israel.

Smotrich’s Religious Zionism Party and Ben-Gvir’s Otzma Yehudit Party have repeatedly threatened to withdraw from the coalition if Netanyahu entertains measures that could pave the way toward a two-state framework. Both parties maintain that Israel’s territorial claims to Judea, Samaria, and Gaza are historically and legally nonnegotiable.

While Prime Minister Netanyahu has not yet publicly responded to the latest statements from his coalition partners, sources cited in the Israel National News report noted that the Prime Minister’s Office has maintained a cautious approach regarding the U.S. initiative.

Government officials indicated that Israel continues to prioritize its military objectives in Gaza, particularly the destruction of Hamas’s remaining operational capacities, over engagement in any long-term diplomatic framework.

Nevertheless, critics within the government, including Smotrich and Ben-Gvir, argue that the absence of a clear public declaration opposing Palestinian statehood sends a dangerous signal to the international community and emboldens foreign governments seeking to pressure Israel into concessions.

The Israel National News report emphasized the widening divide between Israel’s right-wing leadership and the Trump administration, as Washington pushes for a post-war roadmap that includes Palestinian participation in governing Gaza and eventual progress toward statehood.

Israeli officials have repeatedly stated that they will not allow the Palestinian Authority—which continues to pay stipends to terrorists imprisoned in Israel and to the families of those killed in attacks—to regain control of Gaza.

Meanwhile, both Smotrich and Ben-Gvir insist that any recognition of Palestinian sovereignty, even in limited or provisional terms, would constitute a betrayal of Israel’s foundational principles.

As the Israel National News report noted, the current dispute highlights not only the fragility of Israel’s ruling coalition but also the growing diplomatic tension between Jerusalem and Washington, as the two allies navigate fundamentally different visions for the future of the Middle East.

Whether Netanyahu will ultimately heed the calls for a “decisive response,” as Smotrich demands, remains uncertain. But the chorus of criticism from within his own cabinet signals that the question of Palestinian statehood — long a fault line in Israeli politics — is once again poised to test the government’s unity at a critical juncture for the region.