Country Report Israel January 2011

The political scene: US mediation efforts continue

Officially, the US is continuing with its efforts to get the process back on track. Israeli and Palestinian negotiators flew to Washington immediately after the freeze announcement, and the US secretary of state, Hillary Clinton, urged Israel to map out its borders with a projected Palestinian state even without direct negotiations. The US mediator, George Mitchell, also returned to the Middle East on December 12th. But it is difficult to see how the White House will succeed, after its big push over the last year has collapsed.

Mr Netanyahu's biggest domestic headache now is the Labour Party, whose relatively small size belies its importance, because it gives his otherwise right-wing, hard-line government a moderate veneer. The security expertise of its leader, the defence minister, Ehud Barak, is especially valued by the prime minister. Mr Barak himself seems determined to remain in the coalition, despite promises to quit in the absence of progress on peace talks by January 2011. But several Labour ministers are threatening to leave-a move that would trigger a leadership battle within the party.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
IMPRINT