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The Palestinian government receives pledges of almost $300 million in new aid (1). Yesterday?s incident in Jerusalem raises Israeli concerns over attacks in the city (2). The Angus Reid Global Monitor features a poll of Palestinian expectations for statehood (3), and an op-ed by Ali Jarbawi supports the results, calling for a new approach to state building (10). Israeli President Shimon Peres asks Kadima election winner Tzipi Livni to form a new government following Ehud Olmert?s resignation (7).

Ehud Olmert formally resigns as Israeli Prime Minister (1). Israeli President Shimon Peres is expected to ask Foreign Minister Tzipi Livni, winner of the recent Kadima party elections, to form a new coalition government (4). A commentary in The Times of London discusses the importance of Israel?s continued work towards a peace deal despite distractions (2). A Fatah official states that a military option against Hamas is a possibility (5), resulting in a strong reaction by Hamas leadership (9). Palestinian company PADICO announces a massive investment plan for the West Bank (6).

Palestinian President Mahmoud Abbas discusses the future of the peace process in an op-ed for the Wall Street Journal (1). A second battalion of Palestinian National Security Forces begin U.S. funding training in Jordan (2). A pair of articles discuss the challenges that face newly elected head of the ruling Kadima party Tzipi Livni (3) (5). A Palestinian candidate enters the race for mayor of Jerusalem (7). Haaretz examines the revitalization of the West Bank town of Jenin (8).

After claiming victory in yesterday?s Kadima party elections Tzipi Livni begins the task of assembling a new government (1) (2). The BBC offers a succinct summarization of the Israeli leadership change (3). Israeli and Egyptian negotiators meet in Cairo to discuss a Hamas prisoner exchange (6). The ongoing water shortage continues to challenge Palestinian farmers (7). The Israeli High Court intervenes to halt demolition of an illegal settler outpost in the West Bank (9).

Foreign Minister Tzipi Livni claims victory as the Kadima Party successor to Prime Minister Ehud Olmert (1). The World Bank warns that Israeli restrictions are severely hampering the growth of the Palestinian economy and leaving it largely dependent on foreign aid (2). An op-ed by Jonathon Freedland in The Guardian discusses the prospects for a future two-state solution (3). Israel lifts restrictions on the town of Nablus that had barred Israeli Arabs from shopping in the town (4). Jordan and Kuwait renew their support for the Palestinian Authority (7).

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