If he declares a state, Israel will return back to the status quo and occupy all the WB and impose civil adminstrations like pre first intifada. Arafat was known as Abbas was, until he finally woke up from the bad dream and did not accept the "generous" offer of Barak at Camp David. At least Fayyad has goals and aspirations for a future state of Palestine with his economic expertise. Abbas wants to keep the status quo of allowing Israel to rule Palestine by proxy.
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Preliminary report: Shooting attack in East Jerusalem's Damascus Gate (Haaretz)
from the article: Abbas: I don't want to declare unilateral statehood