Netanyahu has already failed as PM once before. He was brought down by the right of his own party for negotiating the Wye River Accords and his concessions to the Palestinians over Hebron. Now he's back, and he isn't going to annoy the Settlers or psycho-right by allowing any outbreak of peace, or even peace negotiations.
Australian police arrest 5 over shooting 'linked to terrorism' (Reuters)
from the article: The world is sick of Netanyahu's lack of policy