The PLO says Israeli extremists and settlement construction should not be allowed to derail talks. The next round of negotiations will be split between Jerusalem and Egypt. Chief PLO negotiator Saeb Erekat denies apologizing to Israelis. Celebrating the new year, Israelis are pessimistic about peace. A new report says Palestinian security reform is threatened by the occupation and internal divisions. PLO officials say they won't recognize Israel as a “Jewish state.” Sec. Clinton says momentum is building in the Arab world in support of a two state agreement, and that there may never be another chance for peace. Ha'aretz interviews David Makovsky. Hamas accuses the PA of “protecting the enemy” and “treason” for arresting suspects in recent shooting attacks. The Jerusalem Post says PM Netanyahu is embracing new language to facilitate negotiations. The BBC looks at Hamas' presence in the West Bank. Sanctions against the UC Irvine MSU, for disrupting a talk by Israeli Amb. Michael Oren, are shortened. Randa Takieddine considers Europe's absence from the peace process. Social media are becoming a Middle East battlefield. The CSM reviews a new humor book about Middle East peace.