Prime Minister Ehud Olmert said Tuesday he is in favor of the unification of a Fatah-led Palestinian Authority (PA) in Judea, Samaria and Gaza. "The solution remains two peoples, two states--a Palestinian state and a Jewish state," Prime Minister Olmert told the Italian newspaper Corriere della Sera.

"We are not stupid. We don't want to separate Gaza from the West Bank. We know that a million and a half Palestinians live in the Strip. How can they be separated from the others?"