> The political-economic reality for Israel is that a full peace is very > profitable, and that staying on a war footing will destroy the economy. > They can only defend against conventional forces by calling the reserves > up: which grinds the economy to a halt. As it is, the economy has slowed > considerably over the last two years. The bottom line is that a full peace > would be a boon to Israel. It would be a boon to the Arabs, but probably > not to the Arab governments.
Yes. But land is the foundation of the state. Furthermore, Zionists arguably have a religious *duty* to make all of Palestine part of Israel. With the above givens a land-for-peace deal is quite possibly a fools bargain. If Palestinians renounce terrorism and police themselves to enforce the renuciation then the deal is ever so much less attractive.
