2013 Briefing Book - Print Version - Aipac

PEACE PROCESS
Israel Takes Steps to Pave the Way for Talks
Despite persistent Palestinian rejectionism, Israel has offered important political and economic
incentives to Abbas to return to talks. Israeli Prime Minister Benjamin Netanyahu has
repeatedly called for direct negotiations and has remained committed to a two-state solution.
Israel also signed a significant new tax agreement aimed at increasing the PA’s revenue from
tax collection to help bolster the PA’s finances. Israel pressed the International Monetary Fund
(IMF) to provide a $1 billion loan to support the PA budget. Despite Israel’s efforts, the IMF
rejected the loan request.
Additionally, Israel issued 5,000 additional permits for Palestinians to take jobs in Israel’s
construction sector, consenting to the construction of four power substations in the West Bank
and allowing more than one million Palestinians from the West Bank into Israel during Ramadan.
Rather than reciprocate these moves with goodwill gestures of their own, the Palestinians have
chosen to take such harmful unilateral steps as seeking an upgraded status at the United Nations
while refusing to negotiate with Israel. As a result, Israel is currently reexamining its economic
policies toward the Palestinians until their long-term intentions become clear.
Hamas and Fatah Unity Efforts
Amid this complicated backdrop, Fatah and Hamas have pursued on-again, off-again
reconciliation talks. Hamas’s acceptance of the Quartet principles must remain the central
requirement for U.S. acceptance of the legitimacy of a government emerging from any potential
unity deal. Indications that Hamas and other terrorist groups such as Islamic Jihad could
possibly join the PLO to further reconciliation efforts also raise concerns about the future
commitment of the organization—which represents the Palestinian people in the territories and
beyond—to peaceful talks with Israel.
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