Palestinians are planning to create a central bank and currency. Palestinians are skeptical of the efficacy of protests. Ori Nir says Israelis should celebrate interdependence with Palestinians as well as their own independence. A Hamas leader reiterates it will not recognize Israel, and another gives Israel one year to recognize a Palestinian state. The first Palestinian corporate bonds are issued. The European Union will give the PA €85 million to help meet payroll. PM Netanyahu will address Congress on May 24. PM Fayyad may retain his position in a new government, which Hamas and Fatah leaders are meeting in Cairo to discuss. France may host an international meeting on the conflict. Palestinian leaders condemned Israel’s withholding of tax revenues, which Amira Hass calls “robbery,” and comments by the finance minister. Israel freezes construction of part of the separation barrier. Shlomo Avineri says peace requires Palestinian self-criticism. An Israeli court issues temporary orders stopping demolition of Palestinian homes. DM Barak presents new peace proposals. Israel is making a major investment in real-time satellite capacity. FM Lieberman says Israel will talk to the PA but not freeze settlements. A new study shows Israel stripped 140,000 Palestinians of Jerusalem residency from 1967-1994. Palestinian-Israeli security cooperation may be in jeopardy. Analysts consider how far Hamas will compromise with Fatah, and Osama Al Sharif says many obstacles to the agreement remain. Jameel Theyabi looks at the relationship between Hamas, Syria and Iran. Hussein Ibish says not enough information is available for a serious analysis of the Hamas-Fatah agreement.

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