NEWS: PM Fayyad says the PA fiscal crisis is being exacerbated by pledged Arab aid that is not being delivered. PM Netanyahu says Israel is now going to construct a barrier along the Syrian border. Sen. Rand Paul calls for a gradual reduction in aid to Israel. Egypt says it has foiled a car bombing attempt near the Gaza border. Netanyahu's rivals are considering an implausible center-left coalition for the coming election. Charges are dropped against an Israeli youth accused of attacking a Palestinian taxi. Israeli security officials believe there is a "low possibility" of another Palestinian uprising. Hamas officials say they will be selecting a new leader this month. Netanyahu says he still stands behind his Bar-Ilan speech in which he endorsed a two-state solution. The PLO says it's working to end violence in Palestinian refugee camps in Syria. Many Palestinian citizens of Israel seem ready to ignore the upcoming Israeli election. COMMENTARY: Jackson Diehl says the Obama administration should adopt a low-key approach to Middle East peace, but Jeremy Ben-Ami says bold measures are required to save the two-state solution. Ha'aretz says the Israeli government is wrong to stop Palestinian prisoners from seeking an education. Avner Cohen says Asma Aghbarieh-Zahalka is creating a new political discourse in Israel. S. Daniel Abraham says, in order to survive as a Jewish state, Israel needs a Palestinian state alongside it. Ben Caspit says Netanyahu must now choose between the sane parties of the center-left or the not-so-sane religious right. The Jerusalem Post says Palestinian leaders are irresponsible in blaming Israel for their fiscal crisis. Jeff Barak says Netanyahu's policies have been disastrous. Jonathan Freedland says Israel's shift to the right will cost it the friends it needs most. Peter Beaumont says Netanyahu appears to be a "strong man with a fearful heart." Alex Joffe says Palestinians may hate Netanyahu, but they are playing into his hands at every stage. The Daily Star says Palestinians need to persist in pursuing national reconciliation. Hamas figure Kassem Kassir says the group would like to maintain relations with Iran, if possible. Raphael Ahren says Netanyahu and FM Lieberman don't mean what the world thinks they're talking about when they refer to a two-state solution. Tal Kra-Oz looks at the rise of the annexationist, one-unequal-state, movement on the Israeli right.

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