NEWS: Europe is assuming a larger role in peace talks. Refugees across the Middle East experience deep frustration. Pres. Abbas says UN initiatives should not affect negotiations with Israel. A shelter for abused women is opened in Gaza. The Knesset rejects a bill to investigate NGOs and human rights groups. Analysts say Israel’s handling of the latest flotilla reflects a learning curve. Despite the blockade, a new mall opens in Gaza. Israel’s attorney general has reportedly told PM Netanyahu to apologize to Turkey over last year’s flotilla. Several countries ask Israel to stop forging their passports. Israel’s cost-of-living crisis may be the consequence of funding the occupation. Palestinians are also facing a growing economic crisis. COMMENTARY: Ha’aretz says the high command must stop the spread of religious extremism in the Israeli military. Gideon Levy says MK Danny Danon is acting like Joe McCarthy. D. Bloomfield says Netanyahu was wrong to support an antidemocratic boycott law. Noam Sheizaf says the law is about forcing Israelis to support the occupation. The National says Israel is afraid of nonviolent protests. Salon interviews the founder of J Street. Hagit Ofran and Jennifer Kaplan say settlement activity is a lucrative business. Bernard Avishai looks at why Israelis are nervous about September. Didier Jacobs says the international community, especially the EU, must play a stronger role in peace talks. Robert Baer says he does not actually have any information about Israel planning to bomb Iran. Trudy Rubin looks at the prospects for Israeli-Turkish rapprochement.