Contours of an Israeli-Palestinian peace settlement

Abstract

Israelis and Palestinians have off-loaded the cost of their conflict to outsiders. The massive subsidies for Palestinians should be gradually withdrawn and Israel should pay rent for the settlements and lands it occupies. This rent will fund the Palestinian economy and act as compensation in lieu of the right of return. The Palestinian state will be demilitarized and neutral, and become viable through economic ties to Israel and international aid. Two states will  coexist along the 1967 Green Line, and East Jerusalem will be made part of “Jerusalem: one city, two capitals.” Peace-making will be backed by the major international stakeholders and the agreement will  be legitimized by voters in both countries. No one is under any illusions about the obstacles to an Israeli-Palestinian  peace agreement. Yet ideas that seem far fetched in time become actionable: for decades no one expected that majority rule in South Africa would be peacefully achieved, and few anticipated that Franco-German cooperation and alliance after two bloody World Wars would give birth to the European Union.