NEWS: PM Netanyahu's new coalition has greatly increased his political power, while Kadima leader Mofaz will add a more moderate voice to the government. The new coalition is already arguing about Jewish religious privileges and exemptions. The CSM looks at how the new Israeli government's policies might change regarding Iran and the Palestinians. A second hunger-striking Palestinian prisoner is hospitalized. Pres. Abbas warns of a “disastrous” backlash if one of the hunger strikers dies. Abbas says he's ready to move forward with negotiations with Israel providing it offers “anything promising or positive.” Israel's attorney general is considering criminal prosecution against a Palestinian documentary filmmaker. An extremist Jewish Israeli organization takes out ads warning parents to keep their daughters away from Arabs. Palestinian citizens of Israel seem to be losing their enthusiasm for “National Service.” COMMENTARY: Reuters interviews PM Fayyad, who says Palestinians are internationally isolated and short on funds. The LA Times says it would be irresponsible and tragic to give up on a two-state solution. Shmuel Rosner says Netanyahu's new huge coalition majority can only be justified if it has similarly ambitious policies. Ha'aretz says the new coalition has stripped Netanyahu of any excuse not to move forward on peace. Carlo Strenger says Mofaz's two-stage peace plan could prove a moment of truth for both Netanyahu and Abbas. Uriel Epstein says self-determination for Israelis and Palestinians depends on a two-state solution. Ronald Tiersky says the answer might be a creative Israeli-Palestinian Confederation. The Jordan Times says Israel's new coalition is “dirty politics” and “temporary.” Barbara Slavin says Israel's new government will have to deal with a growing international boycott movement. Bernard Avishai says he should be appalled by the cynicism behind the new Israeli coalition, but he's actually relieved. Benny Morris says Israel's new coalition looks a lot like the one formed right before the 1967 war, and might be a prelude to an attack on Iran.