Statehood is Palestine's birthright since the 1948 UN declaration. After over fourty years occupation, that birthright needs affirmation. Israel can help that affirmation occur by negotiating openly and honestly demonstrating good faith. Or Israel can continue colonizing of the West Bank. A declaration of statehood is an affront to the policy of occupation. On the other hand, Israel could start dismantling its policies of occupation as a visible sign of good faith.
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from the article: Palestinian PM: Declaration of statehood just a formality