NEWS: The PA’s financial crisis is causing controversy in the West Bank. Spain reportedly says it backs Palestinian statehood initiatives. PM Fayyad praises Palestinians in Hebron for defying segregation and siege. Jailed Palestinian leader Marwan Barghouti calls on Palestinians to march in support of UN statehood initiatives. Violence may increase between Israel and Gaza-based militants. The EU says it’s disappointed by new settlement construction. A senior PLO official says Palestinians should delay their proposed UN statehood initiative. An extremist religious book divides Jews in Israel. Pro-Israel groups worry the Murdoch scandal may weaken a strong pro-Israel voice. There is little optimism at a UN-sponsored meeting between Israelis and Palestinians. Gaza smuggling spurs a construction boom. COMMENTARY: Carlo Strenger says PM Netanyahu’s cabinet is united by hatred of liberal values. Michael Felson says if the refugee issue can be resolved, other issues will fall into place quickly. Ray Hanania says Christians must be encouraged by governments to stay in Israel, Palestine and the Arab states. Americans for Peace Now says it’s responding to the boycott law by boycotting settlement goods. Tariq Alhomayed asks why the Syrian regime would choose this moment to recognize a Palestinian state. The Gulf News says the suspension of MK Zoabi is further evidence of Israeli racism. Rami Khouri says Israel’s policies look and smell like apartheid. Henry Siegman says Elliott Abrams is wrong to oppose a letter on peace by prominent Americans. Akiva Eldar says responsibility for says the failure of the peace process will lie with the Quartet.

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