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By 2010, when direct talks were scheduled to be restarted, continued growth of settlements on the West Bank and continued strong support of settlements by the Israeli government had greatly reduced the land and resources that would be available to a Palestinian state, creating doubt among Palestinians and left-wing Israelis that a two-state solution continued to be viable.<ref>{{cite news|url=https://www.nytimes.com/2010/08/21/world/middleeast/21assess.html|title=In Mideast Talks, Scant Hopes From the Beginning|first=Ethan|last=Bronner|newspaper=[[The New York Times]]|date=August 20, 2010|accessdate=August 21, 2010}}</ref>
In January 2012 the European Union Heads of Mission report on East Jerusalem found that Israel's continuing settlement activities and the fragile situation of the Palestinian population in East Jerusalem, as well in area C, was making a two-state solution less likely.<ref>{{cite web|first=Amira|last=Hass|url=
On 29 November 2012, the [[UN General Assembly]] voted by 138 to 9, with 46 abstentions, to recognize Palestine as a "non-member observer state". On the following day, Israeli PM [[Benjamin Netanyahu]] announced the building of 3,000 new homes on land to the east of East Jerusalem, in an area referred to as "E-1".<ref>{{cite web|url=https://www.npr.org/blogs/thetwo-way/2012/11/30/166252247/israel-plans-to-expand-settlements-in-east-jerusalem-west-bank|title=Israel Plans To Expand Settlements In East Jerusalem, West Bank|website=[[NPR]]|date=30 November 2012|accessdate=5 December 2012}}</ref> The move was immediately criticized by several countries, including the United States, with Israeli ambassadors being personally called for meetings with government representatives in the United Kingdom, France and Germany, among others. Israel's decision to build the homes was described by the [[Obama administration]] as "counterproductive", while Australia said that the building plans "threaten the viability of a two-state solution". This is because they claim the proposed E-1 settlement would physically split the lands under the control of the Palestinian National Authority in two, as the extent of the PNA's authority does not extend all the way to the [[River Jordan]] and the [[Dead Sea]].<ref>{{cite news|url=http://www.latimes.com/news/opinion/editorials/la-ed-e1-israeli-settlement-20121204,0,1913186.story|title=Israel takes a harder line|newspaper=[[Los Angeles Times]]|date=December 4, 2012|accessdate=December 5, 2012}}</ref><ref>{{cite web|url=http://www.jpost.com/DiplomacyAndPolitics/Article.aspx?id=294520|title=Australia joins countries criticizing settlements|website=[[Jerusalem Post]]|date=December 4, 2012|accessdate=December 5, 2012}}</ref><ref>{{cite news|url=https://www.usatoday.com/story/news/world/2012/12/04/israel-east-jerusalem-settlements/1744829/|title=Israel to advance East Jerusalem building plans|newspaper=[[USA Today]]|agency=[[Associated Press]]|date=December 4, 2012|accessdate=December 5, 2012}}</ref> Israel's Labor party has voiced support for the two-state solution, with [[Isaac Herzog]] stating it would be "in Israel's interests".<ref>{{cite web|url=http://www.theaustralian.com.au/news/inquirer/two-state-policy-settlements-on-benjamin-netanyahus-agenda/news-story/fbafc7a043f16b854f0fcc7f04563fd3|title=Two state policy, settlements on Benjamin Netanyahu's agenda|work=[[The Australian]]|date=February 20, 2017|access-date=February 22, 2017}}</ref>
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=== Three-state solution ===
The [[three-state solution]] has been proposed as another alternative. ''[[The New York Times]]'' in 2009<ref>{{cite news|url=https://www.nytimes.com/2009/01/12/world/middleeast/12egypt.html?hp |work=The New York Times |title=Crisis Imperils 2-State Plan, Shifting a Balance |first=Michael |last=Slackman |date=January 12, 2009 |access-date=March 28, 2010}}</ref> reported that Egypt and Jordan were concerned about having to retake responsibility for Gaza and the West Bank. In effect, the result would be Gaza returning to Egyptian rule, and the West Bank to Jordan.<ref>{{cite web|title=Israel-Palestine: The return of the Jordanian option|url=
=== Jordanian option ===
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=== Dual citizenship ===
A number of proposals for the granting of Palestinian citizenship or residential permits to Jewish settlers in return for the removal of Israeli military installations from the West Bank have been fielded by such individuals<ref>{{Cite web|url=
Israeli Minister [[Moshe Ya'alon]] said in April 2010 that "just as Arabs live in Israel, so, too, should Jews be able to live in Palestine." ... "If we are talking about coexistence and peace, why the [Palestinian] insistence that the territory they receive be ethnically cleansed of Jews?"<ref>[http://www.jpost.com/Israel/Article.aspx?id=173302 'No need to remove any settlements'] By Herb Keinon, ''Jerusalem Post'', 16 April 2010</ref>
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