Israel

July 2007 | Risk Summary

We see the establishment of a Hamas-led mini-state in Gaza as an overwhelmingly negative development in terms of both Israeli and Egyptian security and the peace process. In spite of Israeli Prime Minister Ehud Olmert's view that the formation of a new Fatah-led Palestinian government on the West Bank creates 'an opportunity that has not existed for a long time', we see the partition of the two territories as a the final freeze on a peace process - the Road Map - which had been stalling even before the election of Hamas. Although it is unclear how long Hamas will

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