Israeli-Palestinian Conflict

When Benjamin Netanyahu took up his second term as Israel's Prime Minister on March 21, 2009, he already had a reputation as a hardliner. His first spell in office from 1996 to 1999 had seen him pursue an explicitly non-conciliatory course toward the Palestinians. And ten years later, he appointed Avigdor Lieberman - a man often accused of being a nationalist agitator - as his foreign minister.

Netanyahu sought to dispel international skepticism toward his reelection and his new, right-wing cabinet by stressing in his inaugural speech that he was open to dialogue with the Palestinians.

But he also left no doubt that he was not in any particular hurry to reach any sort of definitive deal.

"We will conduct negotiations with the Palestinian Authority with the goal of reaching a final settlement," he promised. "We don't want to dominate the Palestinians."

But, Netanyahu continued, all attempts to "shorten" the peace process had only led to fresh terrorism and bloodshed. Under his leadership, the Prime Minister added, "Israel would proceed "with its eyes open, in a positive spirit and with the honest intention of ending the conflict between us and our neighbors."

Movement but no progress

But one year after the start of Netanyahu's second term, Israelis and Palestinians are nowhere near direct negotiations in "a positive spirit." Indeed, even indirect talks have proved impossible since the Palestinian leadership under Mahmoud Abbas have refused to negotiate without a promise from Israel to stop building new settlements in East Jerusalem.

Pressure - in particular from the United States - has forced Netanyahu to back away from some hard-line positions. In his "Bar-Ilan Speech" of June 2009, Netanyahu came out for the first time in his career and backed the establishment of a Palestinian state. At the same time, he instead said that that state be fully demilitarized, with no control over its airspace, and that Palestinian refugees give up their right to return.

In September 2009, Netanyahu ordered a broad halt to construction of Jewish settlements in the occupied West Bank. But the order was only valid for ten months and did not include East Jerusalem.

The Israeli government officially annexed East Jerusalem by law in 1980. But the UN Security Council unanimously rejected the annexation, and Palestinians still hope that it will become their future capital.

And Netanyahu has consistently defended the position that Jerusalem as a whole is the capital of the state of Israel.

"Our Jerusalem policy is consistent with that of all Israeli's governments for the past 42 years," Netanyahu said in a recent speech. "This policy has not changed. Construction in Jerusalem does not, in our view, differ from construction in Tel Aviv."

Israel does not regard Israelis living in East Jerusalem as settlers, but simply as citizens residing on Israeli territory.

Angered allies

A year into Netanyahu's second term, the Middle East peace process remains on ice, and the continuation of settlement building has led to a serious crisis in Israel's relations with its most important partner.

Leading members of the US government under President Barack Obama have criticized Netanyahu's policies as counter-productive and contrary to America's interests in the region. The mood has turned frosty.

And there is a danger that radical elements among the Palestinians will be strengthened. Recent fighting on Israel's border with the Gaza strip was the heaviest of any point since Israeli's military incursion there 15 months ago. And there's no guarantee that things will not continue to escalate.

Author: Rainer Sollich (jef)
Editor: Michael Knigge