For religious and nationalistic Jews, Israel and the West Bank are the same. Despite this Netanyahu is still offering a Palestinian state because most Jews want peace. You can be sure that Netanyahu was choking on the idea of ceding biblical Jewish territory that Jews controlled for an offer of peace. What is "stolen land" to the Palestinians is the "Land of Israel" to Jews and Jews will not wait forever for the Palestinians to decide on a compromise.Peace is a Jewish state and a Palestinian state, not 1 or 2 Palestinian Muslim states with no Jewish Israel as the Palestinians want.
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from the article: Israel hints it may retroactively legalize settlement construction