Israel-Palestine Latest: Quartet Pushes Israel as Netanyahu Pushes Economic Plans

UPDATE 1830 GMT: Britain's Defense Secretary Liam Fox has underlined the importance of such a peace between Israel and Palestine in deflecting Iran's potential nuclear power, "an existential threat". Fox said:

The United Kingdom is pushing for stronger sanctions to influence Iran, but the importance of the Middle East peace process should not be overlooked.

Progress towards a two-state solution -- a secure and universally recognized Israel alongside a viable and contiguous Palestinian state -- is important for defusing the malign political influence of Iran in the region.

After the Quartet's meeting, German Foreign minister Guido Westerwelle said:

Those who want to support moderate forces in the Middle East, those who want to support constructive forces in the Middle East, are well advised to press for progress in the Middle East peace process

On Friday, former British Prime Minister Tony Blair --- acting as the special envoy of the Quartet (the United States, European Union, Russia and United Nations) --- met Israeli Prime Minister Benjamin Netanyahu.

Netanyahu promised to boost the economic growth in Palestinians areas. These "confidence-building measures'"included several infrastructure projects in Gaza, a natural gas field off Gaza, expansion of Arab construction in East Jerusalem and the extension of Ramallah's security presence to more areas of the West Bank. Then Netanyahu said:

I don't delude myself for a second that an economic peace is a substitute for political peace. We need both and I hope that Abu Mazen [Palestinian Authority leader Mahmoud Abbas] will heed my call and enter direct negotiations with us.

On Saturday, chief Palestinian negotiator Saeb Erekat said in a press statement that the proposal "is just only tricks and procrastination of Israeli Prime Minister Benjamin Netanyahu....What is needed from Netanyahu, if he really wants to build up mutual confidence and peace with us, is to immediately stop settlement in the West Bank and east Jerusalem.

On the same day, the Quartet pushed its own button, insisting that Israeli-Palestinian peace negotiations must advance quickly due to the recent turmoil in Egypt. In these circumstances, the deadlock of the peace process is a threat, iwith further delay in the resumption of negotiations detrimental to the prospects for regional peace and security. 

The Quartet reminded both parties that the goal is the establishment of a Palestinian state by September and  said it regretted Israel's decision to end a 10-month moratorium on construction in settlements in the West Bank and East Jerusalem.