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Mixed Outlook Middle East

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Israeli-Palestinian Peace Dynamics

Israel and the Palestinians endorse a negotiated two-state solution to the conflict, but have very different concepts of this formula and how it should be implemented. Palestinians want Israel to freeze settlement construction, including in East Jerusalem, as a precondition to finalstatus negotiations.

Israel is pressing the Palestinians to resume peace talks immediately and is observing a 10-month moratorium on new settlement construction that excludes East Jerusalem. Israel has refused to deal with HAMAS until it meets

Israel's nuclear reactor at Dimona. Unlike Iran, Israel refuses to sign the NNPT, and refuses to allow its nuclear sites to be inspected.

the Quartet conditions, which are to recognize Israel’s right to exist, forswear violence, and agree to abide by previous Israeli-Palestinian agreements. Israeli Prime Minister Netanyahu has advocated steps to improve the quality of life for West Bank Palestinians by enhancing economic development and easing security restrictions, but Gaza remains isolated.

• The ability of HAMAS and other Palestinian groups to act as spoilers is complicating the process. Palestinian reconciliation talks brokered by Egypt remain deadlocked.

Continuing stagnation in the negotiations process could undercut Palestinian support for a two-state approach, although these proposals for now remain at the rhetorical stage. Frustration over the stalemate has prompted some Palestinians to argue in favor of equal rights within a single state that would encompass Israel, the West Bank and the Gaza Strip.

Palestinian Authority President Abbas, whose threat to resign has created a stir among Fatah, the PA, the PLO, and the international community, has been asked to stay on as President. Abbas has postponed presidential and legislative elections slated for 2010 because of HAMAS’ refusal to participate.

Prospects for Israeli-Syrian Peace Talks

Since Prime Minister Netanyahu assumed office in March 2009, Syria has stated its preference for resuming talks where they left off with the Olmert government, incorporating the informal understandings reached during those talks. Israel says it would enter direct talks “with no preconditions.” Damascus continues to seek a full Israeli withdrawal from the Golan Heights, a position to which the Netanyahu government is unwilling to commit ahead of negotiations.

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