Israeli online daily Haaretz reported on Thursday that Israel's Foreign Minister Tzipi Livni told participants in the World Economic Forum in Davos, Switzerland, that a Palestinian state could in not an illusion and could be achieved.


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Livni said that the Israeli peace talks with the Palestinians must concentrate on the vision of a two-state solution living side-by-side.

During a meeting with the Palestinian President, Mahmoud Abbas, Livni said that a Palestinian state must respect honor the previously signed agreements between Israel and the Palestinians and that “compromising with extremists”, referring to Hamas and other groups, will not achieve anything.

She also called on the international community to “help fighter terror” by not channeling finds to extremist groups, and instead urged the international community to fund moderate groups, Israeli online daily, Haaretz, reported.


Also, Israeli Vice Premier, Shomon Peres, participating in a discussion at the conference said that “Israel and the Palestinians have slight differences regarding the borders of the Palestinian State”.

Referring to the Right of Return of the Palestinian Refugees, Peres said that the refugee should be able to “return to Palestine, the way Jews are able to return to Israel”.


President Abbas, addressing the conference, said that it is time for peace between Israel and the Palestinians.

He added that a peace agreement would help strengthen the hands of moderates in the region and fight extremists of all kinds, Haaretz reported.


“The conflict between the Palestinian and Israel is the most serious conflict that needs a solution”, Abbas said in his speech in Arabic, “I have no doubt that despite of difficulties, there is still an atmosphere to the resumption of peace talks”.

He added that the US-backed Road Map Plan should be implemented including the Arab Initiative and Bush's vision for a two-state solution, Haaretz reported.


Abbas also said that there is no need to new peace initiatives, but there is a grave need to promote the stalled peace process on the foundations of the existing initiatives including the UN resolutions and the Road Map.

Abbas stated that poverty levels in Gaza are increasing due to the Israeli restrictions and the Israeli military attacks against the Palestinian infrastructure.

“79% of the Palestinians in Gaza are below poverty line, 51% of them are in utter poverty”, Abbas stated.


Besides the Israeli and western sanctions against the Palestinians since the election of Hamas last year, the Israeli settlements, the Annexation Wall, and the checkpoints are damaging the Palestinian economy by Isolating the residents and making them unable to reach their workplaces, farmlands, and schools.


Palestinian Chief Negotiator, Dr. Sa'eb Erekat, and the Israeli Deputy Prime Minister, Ephraim Sneh, told a media briefing that a peace agreement is needed to build an alliance of moderates.