The New York Times says the Obama administration needs a more imaginative approach to peacemaking. After settlers vow to defy the construction moratorium, and describe Pres. Obama as "the enemy of the Jews," Israel hires more building inspectors. The Christian Science Monitor interviews Hamas official Aziz Dweik. UN Secretary-General Ban Ki-moon stresses the importance of creating a Palestinian state. German mediators are reportedly attempting to finalize a prisoner exchange between Israel and Hamas, but Mossad has recommended that Fatah leader Marwan Barghouti not be included. Quartet envoy Tony Blair says without a two state agreement there will be a "hell of a fight." YNet urges Netanyahu to take responsibility for Minister Limor Livnat's description of the Obama administration as "awful." The National profiles employment difficulties facing Palestinian women in Israel. Al-Hayat compares the difficulties faced by El-Baradei and Mitchell dealing with Netanyahu and Ahmadinejad. Rami Khouri says the Palestinians should call Israel's bluff and returned to negotiations with an aggressive agenda. Yossi Alpher argues that the PA government state building plan provides hope in the West Bank, but a different approach is required for Gaza.

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