NEWS: Palestinian leaders express outrage at reports of sky rocketing Israeli settlement construction in occupied East Jerusalem. Peace Now says there was a 20% increase in settlement construction in 2011. Palestinian drivers protest Israeli-only roads in the occupied West Bank. Palestinians accuse Israeli settlers of vandalizing another West Bank mosque. Egyptian activists say they will try to prevent Israeli pilgrims from visiting the tomb of a venerated Rabbi. Hamas leader Haniyyeh arrives back in Gaza. Some of Israel's new settlement plans break commitments made to the United States. Yisrael Beiteinu proposes new Israeli legislation restricting Knesset membership to military veterans, a move that would effectively eliminate Arab representation. Israel adopts a harsh new law aimed mainly at African migrants. Occupation forces arrest 10 Palestinians in the West Bank. COMMENTARY: Zvi Bar'el says the Israeli military has a long history of sharing information with extremist settlers. Donniel Hartman says Israel needs to ask itself if it is ready for peace. Sari Bashi says Gaza is still occupied by Israel no matter what anyone claims. Tony Karon says Palestinians should learn lessons from the ANC. The Jordan Times denounces FM Lieberman's proposal to expel Arab villages from Israel. The Gulf News says Israel needs to rein in such extreme comments. Yariv Oppenheimer has 2012 could be a year of dynamic resurgence of the Israeli peace camp. Imad Al-Frangi says changes in the Arab world are being led by Islamists, and this will benefit Hamas. Dan Rothem asks whether Jews should be allowed to live in a future Palestinian state. David Makovsky says there will be no diplomatic breakthrough during a US election year.

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