Israel

September 2006 | Risk Summary

With Prime Minister Ehud Olmert facing severe domestic criticism for his handling of the Lebanon crisis, there is a risk of early elections. Moreover, Olmert's flagship policy of unilateral withdrawal is also losing public support. The unilateral Gaza withdrawal was initially seen as a success; it was achieved with less disruption than most planners had feared, and it gained Israel greater international support. But now, the Israeli army finds itself back in both Gaza and southern Lebanon - the two territories from which Israel has withdrawn unilaterally. By contrast, Israel's pullout from the Sinai peninsula in 1979 formed part of

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