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Israel’s coalition government begins to take shape, though Netanyahu is still working to attract the support of the moderate parties (1) (6). Egyptian brokered negotiations regarding the release of captured Israeli soldier Gilad Shalit reach a standstill (2) (9). The American citizen injured last week in a demonstration against the West Bank separation barrier remains in critical condition (3). Uzi Arad, widely expected to serve as national security advisor for the new Israeli government, is barred from the United States on grounds that he is an intelligence risk (4) (13). An obscure Palestinian militant group claims responsibility for the shooting of two Israeli police officers in the West Bank earlier this week (5).
Israeli Prime Minister-designate Netanyahu initiates a coalition agreement with the ultra-right wing Yisrael Beitenu party (1) (9), while the European Union, along with the Palestinian and Egyptian leadership, urge the new Israeli government to adhere to the pursuit of a two-state agreement (2) (3) (12). Two Israeli police officers are shot and killed in the West Bank (4) (14). Egyptian brokered negotiations continue in Cairo, where Israeli envoys push for the release of captured soldier Gilad Shalit (7). Hamas and Fatah agree to hold presidential and legislative elections in January, though they remain deadlocked on the question of a national accord government (10).
Three right-wing Israeli parties vie for the important housing portfolio under Prime-Minister designate Netanyahu (1), while concern continues to mount about the rightward shift of a new Israeli government (10) (13). Israel has reportedly agreed to free all 450 prisoner demanded by Hamas in exchange for captured soldier Gilad Shalit (2). Officials from Hamas and Fatah report that there are still major obstacles to be overcome as national accord government talks continue in Cairo (4). The Palestinian Center for Human Rights releases their statistics on the Gaza war (7). A Palestinian youth is killed in the West Bank after allegedly throwing explosives at an Israeli military vehicle (8).
Hamas calls for Islamic Jihad to halt rocket fire into Israel from the Gaza strip (1) (8). Palestinian national accord government talks continue in Cairo, as Egypt applies pressure for a swift resolution (2) (3) (4). After withdrawing from his appointment to head the National Intelligence Council, Charles Freeman blames the "pro-Israel lobby" (5) (14). Secretary of State Clinton warns that the pledged $900 million in American reconstruction aid for Gaza is contingent upon the new Palestinian government's recognition of Israel (9). A Wall Street Journal op-ed urges Palestinian economic growth as a key foundation for a lasting peace (12).
ATFP President Ziad Asali is interviewed by The Media Line (1). The Obama administration promises that U.S. military aid to Israel will not be lessened because of the financial crisis (2). A Gaza family that lost 29 relatives in January's war drops their lawsuit against Israeli government officials (3). The Washington Post profiles the southern Israeli town of Sderot, near the Gaza border (4). Palestinian unity government talks are underway in Egypt (7) (13), while an editorial in the Arab News urges both sides to withhold public skepticism about success (8). Time Magazine examines the resignation of Palestinian Prime Minister Salam Fayyad (10).

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