European Union governments agreed on Monday to put the military wing of Lebanese militant group Hezbollah on the EU terror list, diplomats said, in a major reversal of policy that was driven by concerns over the group's activities in Europe. Blacklisting means imposing visa bans on individuals and asset freezes on organizations associated with the group.

Economy Minister and Habayit Hayehudi chairman Naftali Bennett threatened on Monday morning to dismantle the coalition if a referendum law for any peace deal with the Palestinians is not immediately brought to a Knesset vote. Even Prime Minister Benjamin Netanyahu's own party may split in the near future over the resumption of talks with Palestinians, a source in Likud said.

Israel is planning to free some 82 of the 103 Palestinians sentenced to prison terms in Israel before the Oslo Accords were first signed in 1993, as part of the gestures to the Palestinian Authority ahead of renewed peace talks. The Israeli military backs move, saying freeing veteran prisoners will strengthen Palestinian Authority President Abbas, who is under fire from Palestinian public and parts of Fatah leadership.

The Knesset is scheduled to vote on a controversial bill that would make it harder to topple the government. The bill would mean that the smallest parties, and in particular the Arab parties, would be forced to merge before the next election or risk missing the vote threshold.

Ireland, Fiji and Nepal said they plan to send peacekeepers to the UN Disengagement Observer Force in the Golan Heights, making up for the departure in June of 380 Austrian troops from the force. 

Israeli clothing chain Fox announced the opening of a new store in Ramallah. The clothing retailer is set to be first Israeli chain to expand into Palestinian Authority market. The store will be run by a Palestinian franchise owner.

Former captive soldier Gilad Shalit will fly on the first chartered El Al aliyah flight of the summer, which will carry 231 new immigrants.

The Israel Police detained a Palestinian teenager on Monday in the northern town of Kfar Tavor for allegedly holding a utility knife to the neck of a local resident and threatening stab her.