I have a peace plan - an EU model of states joined together into a federation. In this model, most power is kept at the state level. I suggest three states based on the Green Line - Israel, Gaza, WB with three capitals Tel Aviv, Gaza City and Ramallah respectively. Jerusalem/Al Quds becomes the capital of the federation: The United States of Israel and Palestine. In doing so peace treaties are signed between the three states. A Capital Territory is set up around Jerusalem/Al Quds which administers the city. Settlers are encouraged back to Israel with compensations but those who stay in WB must abide by their laws. The roads and infrastructure Israel built in WB is handed over to WB government. A combined federal defence force is created and the IDF withdraw to Israel. The wall is removed and there is freedom of movement between states (as in UN) but applying for citizenship takes the normal routes of any state. The blockade on Gaza is lifted. Hebrew and Arabic are taught in schools across the federation and so is the literature, culture and religions of the two peoples.
Islamic State militants blow up ancient Arch of Triumph in Palmyra (Reuters)
from the article: Peres: Israel needs to formulate its own Mideast peace plan