For the complete report from the guardian.co.uk click on this link
The official explained to Bibi Netanyahu that if there was a peace settlement, extra investment would push Israel's long-term growth rate from 5% a year to 7%. The Israeli prime minister responded that if the country had 5% growth, it did not need peace. Netanyahu was joking, according to the official who recounted the story – but the quip highlights a serious point. There is no prospect of a settlement between Israelis and Palestinians, and many Israelis are fairly relaxed about that. During a recent visit to Israel, I met very few people who were optimistic about the peace process. Netanyahu says he supports the creation of a Palestinian state. But the terms he is offering – with much of the hypothetical state's security under Israeli control – would not be acceptable to any Palestinian leader.
Many Israeli politicians and businessmen have a dark view of Europe. At a conference I attended in Jerusalem, one minister – a noted dove within the Israeli government – complained about the influence of Muslim minorities on the foreign policies of EU countries. I told him that Germany and the Netherlands, two states with large and vocal Muslim minorities, were among Israel's best friends in Europe. Israelis have long been worried about Iran. But their fear of Turkey – until very recently a close ally – is new. The Turkish government's criticism of Israeli actions in Gaza and its recent cancellation of joint military exercises makes Israelis fret that Turkey is nestling up to the Iran-led coalition. They worry about the growing power of Islamists in Turkey, the diminishing role of the secular army in Turkish public life, and Prime Minister Erdogan's burgeoning friendship with Iran's President Ahmedi-Nejad.
Many more neutral observers, however, believe that Erdogan is trying to balance Turkey's foreign policy between the EU, the US, Russia, Iran and the Arab world, and that may be in Turkey's best interests.
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