The real cost of freezing building in Jerusalem is a 10 month municipal delay. Big deal. The psychic cost is great since Arab rights in the Old City would be obviously on the table whether Netenyahu agrees that that's the case or not. I would be really surprised if he can get a majority of his cabinet to back him on that even if that were his preference. Obama should keep up the pressure. Perhaps despite all the bluster, he will determine that he can't "manage" the U.S. otherwise and convince his government that that's the case.
Palestinians report IDF airstrikes on Islamic Jihad targets in southern Gaza Strip (Haaretz)
from the article: 'Netanyahu to propose 10-month settlement freeze'