NEWS: PM Fayyad announces new economic measures in response to Palestinian protests at the rising cost of living in the occupied West Bank. The protests have focused on the PA leadership, and are beginning to turn violent, but no injuries are reported yet. Palestinian leaders are looking for ways of improving the economic situation. Pres. Abbas says Israeli restrictions are impeding an effective response to the economic crisis. The PA says it is working to facilitate the creation of an industrial zone in Jenin. Palestinians say Israel intends to confiscate land near Nablus for a new settler bypass road. Israeli officials complain about US policy towards Iran. PM Netanyahu suggests the United States has no right to restrain Israel from attacking Iran. UN officials criticize both the blockade of Gaza and rocket attacks against Israel. Israel is creating a new police unit to combat “price tag” violence against Palestinians. Hamas says it has agreed to create a joint security committee with Egypt. Israel instructs its diplomats to raise the issue of Jewish refugees from the Arab world in Israel to “counteract” the Palestinian refugee issue. India reiterates its support for Palestinian independence. Israeli and Palestinian women launch a joint business in handicrafts. The tax exempt status of the Zionist Organization of America has reportedly been revoked. COMMENTARY: Akiva Eldar says a new study demonstrates that Palestinian citizens of Israel and Palestinians living under Israeli occupation have developed separate narratives, and, in a separate column, he argues that those who have given up on the two-state solution are surrendering to defeatism. The Jerusalem Post claims that Palestinians and other Arabs are not only responsible for the Palestinian refugee problem, but also for Jewish refugees in Israel from the Arab world. Sophie Claudet and Saleh Jadallah doubt Pres. Morsy will adopt substantially new policies towards Gaza.

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