Financial Crisis May Be Last Nail in 2008 PA Peace Coffin
The financial crisis in the
Hanna Siniora, co-president of the
The Bush Administration had hoped to see at least a document of understanding, if not an outright agreement between Israel and the PA that would lead to establishment of a new Arab state within Israel's current borders before the end of 2008.
But the current economic difficulties that have sucked the White House into a vortex of quick bailouts and not-so-quick fixes for the future are most likely to keep the Bush Administration busy until the end of his term.
Meanwhile, Prime Minister Ehud Olmert is also otherwise occupied heading a caretaker government while his successor, Foreign Minister Tzipi Livni, tries to form a new coalition and fend off at least four corruption investigations that may lead to indictments against him.
Palestinian Authority Chairman and Fatah leader Mahmoud Abbas is similarly busy with shuttle diplomacy aimed at reconstituting a national unity PA government, aided and abetted by