‘Bibi’ refuses to budge

In his long-awaited policy speech on Sunday, Israeli Prime Minister Benjamin Netanyahu accepted the creation of a Palestinian state - but only on condition that it was demilitarised, with no army, no control of its air space and no way of smuggling in weapons.

And he refused to halt the expansion of Israeli settlements, which US President Barack Obama demanded earlier this month in Cairo should be stopped. Netanyahu said settlers were not "enemies of peace" and that he backed the "natural growth" in existing settlements.

Palestinians have immediately denounced the speech, in which Netanyahu also demanded that Palestinians must recognise Israel as a Jewish state and that Jerusalem should be its capital.

A spokesman for the Palestinian leader Mahmoud Abbas said 'Bibi' Netanyahu had effectively "sabotaged " any peace initiative, while Palestinian negotiator Saeb Erekat said: "The peace process has been moving at the speed of a tortoise. Tonight, Netanyahu has flipped it over on its back."
 
In Gaza, Hamas spokesman Sami Abu Zuhri described the speech as "racist" and called on Arab nations to "form stronger opposition" towards Israel.

In Washington, the Obama administration did its best to find positives in the speech. In a statement, the White House concentrated on the Israeli PM's acceptance of the notion of a Palestinian state, welcoming Netanyahu's "endorsement of that goal", and chose to ignore the demilitarisation caveat and the refusal to budge on settlements.

Former US President Jimmy Carter warned that the US and Israeli governments would be on a "collision course" if Israeli settlement activity continued in the West Bank.

WHAT THEY ARE SAYINGTim Reid in the Times: Mr Netanyahu's refusal to halt the growth of Jewish settlements on the West Bank was a further act of defiance and the latest reminder of just how far Mr Obama is from achieving peace. Mr Netanyahu is playing for time. Soon, he calculates, Mr Obama will become burdened by other issues, foreign and domestic.

Tim Franks for BBC News:  This is a speech which will shore up the prime minister's position within his right-wing coalition. It is, whatever you think of the rights and wrongs of it, a powerful forehand deep into the back court of the Americans. It will be fascinating to see when and how the Americans return the ball.

Rory McCarthy in the Guardian: Netanyahu's words left some on both sides frustrated and still may not have done enough to prevent Israel sliding towards a serious diplomatic confrontation with Washington. ·