Whether we like it or not, the settlers have won. The two-state solution is now impossible

Whether we’re willing to admit it or not, Israel’s the Palestinian “peace process” is dead. There’s no hope of any success for a two-state solution.

They can’t say they weren’t warned. In 1987 and 2000, after the eruption of the first and second intifadas in the occupied territories, Israeli officials could plausibly claim to have been taken by surprise. Not this time. Nitzan Alon, the Israeli general responsible for the West Bank, has warned publicly about the possibility of a third intifada by the repressed and stateless Palestinians. If the latest round of US-led diplomatic efforts fails, he told the Jerusalem Centre for Public Affairs, a think tank, on 18 June, “I’m afraid we will see the escalation . . . strengthen.”

Alon’s comments follow similar warnings from, among others, the former Israeli intelligence chiefs Yaakov Peri and Yuval Diskin, as well as Israel’s former head of general staff, General Shaul Mofaz. “We are on the verge of a third intifada,” said Mofaz in January. “The fuel vapor may already be sensed in the air.” Four months earlier, in September 2012, the Palestinian Authority president, Mahmoud Abbas, had responded to demonstrations over political gridlock and soaring unemployment by declaring that a “Palestinian spring” had begun.

It is now a matter of when, not if, the West Bank boils over into violent protests. All eyes are on events in Damascus, Cairo and Istanbul while Israel continues to oversee the longest military occupation in the world, 46 years and counting.

Perhaps the most offensive phrase, still deployed by the laziest observers in the west, is “peace process”. There is no peace; there is no process – despite an astonishing five visits to the region in the past three months by the US secretary of state, John Kerry.

Negotiations between the two sides were “frozen”, to quote Dov Weisglass, the then chief of staff to Ariel Sharon, almost a decade ago. “[W]hat I effectively agreed to with the Americans was that part of the settlements would not be dealt with at all,” Weisglass told the Israeli newspaper Haaretz in October 2004. “Effectively, this whole package called the Palestinian state, with all that it entails, has been removed indefinitely from our agenda.” Or, as a smiling and confident Dani Dayan, the outgoing chairman of the Yesha settlers’ council, put it to me in an interview for al-Jazeera English: “The conflict right now has no solution.”

Dayan and his fanatical friends can take credit for burying the “two-state solution”. Between 1993 and 2000, as Palestinians and Israelis met for summits, conferences and “peace talks”, the number of settlers in the West Bank and East Jerusalem doubled. “It’s like you and I are negotiating over a piece of pizza,” as the Palestinian-American lawyer Michael Tarazi told an audience at Iowa State University in 2004. “How much of the pizza do I get? And how much do you get? And while we are negotiating it, you are eating it.”

Today, the relentless colonisation of occupied Palestinian land continues apace, in defiance of the Geneva Conventions, with 121 settlements and 102 unauthorised “outposts” occupying 42 per cent of the West Bank.

The settlements, therefore, have rendered a two-state solution impossible. The evidence for this? “The idea that a Palestinian state will be formed in the land of Israel has come to a dead end,” declared the former Yesha Council leader Naftali Bennett on 17 June. “Today there are 400,000 Israeli residents of Judaea and Samaria and another 250,000 in eastern Jerusalem.”

Whether we want to admit it or not, the settlers have won – they have what they call a “wet dream” government, protecting and promoting their interests. Israel’s foreign minister-in-waiting, Avigdor Lieberman, is a West Bank settler; so is his deputy. Both Uri Ariel, the housing minister, and Shai Piron, the education minister, are residents of illegal West Bank settlements. Bennett, who leads the pro-settler Jewish Home party, is also the minister for the economy.

Settlers make up 5 per cent of Israel’s population but more than 10 per cent of Israel’s parliament, the Knesset. Beyond the political sphere, settlers have mounted a concerted effort to dominate the Israel Defence Forces. Settlers in the government will not sanction a withdrawal from the occupied territories and settlers in the military would never enforce such a withdrawal. Thus, the “peace process” is a sham, “one of the most spectacular deceptions in modern diplomatic history”, according to the former foreign minister Shlomo Ben-Ami.

On my last visit to the West Bank, I met Dr Mohammed Shtayyeh, the influential head of the Palestinian Economic Council for Development and Reconstruction, and Diana Buttu, a Stanford-educated lawyer and former Palestinian negotiator. “The two-state solution is not possible any more and we are slipping into a one-state situation . . . which is a comprehensive colonisation of all of Palestine,” Shtayyeh said.

Buttu said she no longer backed two states for two peoples, preferring a single, secular, binational state. But is that feasible? “Is it more feasible to try and get the Israelis to agree to the division of Jerusalem – or is it more feasible for us to start pushing . . . Israel to give us our rights, rather than begging for a little piece of land to be carved out [for us]?” she asked me, as we sat sipping tea in a Ramallah café.

Buttu is right. The choice on offer is stark: either a democratic, one-state solution, in which Jews, Muslims and Christians can live side by side as equals – one person, one vote – or Bennett and Dayan’s “status quo” vision, in which nearly four million Palestinians continue to live under a de facto Israeli military dictatorship, denied the right to vote and offered only a divided, bantustan statelet.

I know which I’d prefer. Either way, no matter how many visits John Kerry makes to Jerusalem, it is time to consign the two-state solution to the dustbin of history.

Mehdi Hasan is a contributing writer of the New Statesman and the political director of the Huffington Post, where this column is crossposted 

US Secretary of State John Kerry and Israeli Prime Minister Benjamin Netanyahu at a meeting in May 2013. Photograph: Getty Images

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

This article first appeared in the 08 July 2013 issue of the New Statesman, The world takes sides

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump