The West Bank city of Nablus sees signs of renewed economic growth (1) as Israel begins to relax restrictions on movement for Palestinians (9)(13). Tensions between the EU and Israel continue during a visit by the German foreign minister (2). Six months after the cessation of the war in Gaza, the outlook for the area remains grim (3)(7). Israeli National Security Adviser Uzi Arad rules out a total withdrawal from the Golan Heights during a discussion about possible talks with Syria (4). Egypt claims progress in negotiations for the release of captive IDF soldier Gilad Shalit (8)(10). Israel may permit a specially trained Palestinian counterterrorism unit to operate in the West Bank (12).