The latest Israel-Palestine peace talks were doomed to fail before they began

If you want the bottom line about why William Hague and other dignitaries are in Israel for sham talks about peace, look at the bottom line.

It’s a long way to go for a game of charades. William Hague is in Israel today to support US secretary of state John Kerry’s bid to re-start Israeli-Palestinian peace negotiations. With the peace process stalled since the last serious talks in 2008, Kerry is said to be "obsessed" with finding a way to solve the conflict.

But it won’t happen – not any time soon, and not with the current set of leaders in charge. There will be talks about talks, and there may even be talks. But you can bet your bottom shekel they will lead precisely where every other round of negotiations has led, from Madrid to Oslo to Camp David to Annapolis – down a dead end of continued occupation and war.

This isn’t because, as some claim, the Israel-Palestine conflict is some mind-bendingly complex problem with no ready solution. In fact, there is already a detailed plan on offer, supported by the US, the UN, the EU, the Arab League, and Israeli-Palestinian civil society, to create two states for two peoples, based on the 1967 lines with minor “land swaps”, and with Jerusalem as a shared capital.

And polls of Israelis and Palestinians show that a majority of both peoples continue to support it.

Israel’s hard-line prime minister Benjamin Netanyahu has paid lip-service to the two-state solution. But look at the small print, and it’s clear he is unprepared to make the concessions necessary to bring it about. Netanyahu refuses to consider dividing Jerusalem or to base the border on the 1967 lines – which is like negotiating a divorce settlement on the understanding that one side will keep the family home, the life savings, and the kids.

Other members of Netanyahu’s ruling coalition are more honest: “Two states for two peoples is not the government’s official position,” one bluntly said in a Knesset debate on Tuesday.

The Palestinians, meanwhile, have long made clear they support the main points of the two-state plan. We now know that, even on the most sensitive issue – the fate of refugees displaced by the conflict – they have shown they are ready to compromise by accepting that only a “symbolic” number will be allowed to resettle in Israel.

But the Palestinians’ lack of bargaining power leaves them with no way of putting pressure on an Israeli government that rejects the global consensus. And what’s more, with the Palestinian Authority kept afloat by taxes collected on its behalf by Israel, and on aid from the US and other foreign donors (which accounts for a third of its annual budget), it has no choice but to toe the line, paying lip service to a peace process that offers no hope of peace.

And that, ultimately, is the reason why both sides will engage in this US-sponsored dumb show in the full knowledge it will fail. The Palestinians must negotiate in “good faith” –  providing cover for the continued growth of Israeli settlements – because doing so is the only way to keep the money flowing. And Israel must go through the rigmarole of pretending to seek a deal because, with government budget cuts looming, it needs the $3 billion aid (plus extras) it receives each year from the US, and the international legitimacy even a fraudulent peace process provides.

If you want the bottom line about why these sham talks are taking place, look at the bottom line. Each side has too much invested in the status quo to tell Hague and the other visiting dignataries the truth: that the current “peace process” is no more than a PR process. The conflict will drag on, with no imminent end in sight. After all, why wage peace when war makes for such good business?

John Kerry and William Hague. Photograph: Getty Images

Matt Hill has written on the Middle East for the Daily Telegraph and the Independent. You can follow him on Twitter @mattrowlandhill.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.