NEWS: The fallout from the Israeli election, especially for PM Netanyahu, is being assessed. Many believe Netanyahu will be forced to try to form a centrist coalition, and some reports indicate he may have offered political newcomer Lapid a choice between the ministries of foreign affairs or finance. The election again demonstrates the alienation of Palestinian citizens of Israel from its political system, although their 56% turnout was bigger than expected. Israel says it will boycott a meeting of the UN Human Rights Council on its own record. Secretary of State-designate Kerry says it would be "disastrous" to fail to reach a two-state peace agreement. Jordan's King Abdullah says, if no progress is made, a two-state solution will only be viable for the duration of Pres. Obama second term. Hamas organizes paramilitary training for teenagers in Gaza. Palestinian protesters reconstruct a protest tent city in northwest Jerusalem. PA finance minister Qassis says the government's fiscal crisis is "structural." Israeli security services report that in 2012, for the first time since 1973, no Israeli was killed in any "terror attack" in the occupied West Bank. COMMENTARY: Alon Idan explains how, through a process of radicalization, extreme Zionists actually become anti-Zionists. Gideon Levy and Alex Levac trace the details of the killing of a Palestinian youth by occupation soldiers. Ben Caspit says, at least in terms of image, Lapid seems to be "the perfect Israeli." Michael Cohen says the Israeli election leaves Obama little to work with on pursuing a two-state solution. J.J. Goldberg says Lapid faces as many political challenges as Netanyahu. George Hishmeh says if Obama doesn't prioritize it, a two-state solution may become impossible. David Gardner says the annexationist right in Israel has been strengthened. Hassan Barari says Netanyahu is weakened and left with a precarious balancing act. Meir Javedanfar says the election won't affect Israel's Iran policies. Murat Yetkin says a new, more centrist, Israeli government could repair relations with Turkey.

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