There are 3 common theories: 1. Fear of Lieberman; 2. Opposition of Netanyahu's hardline family to move towards peace; 3. Netanyahu's mind is absorbed by the Iran danger and he doesn't act well on other issues.// Let us examine these theories: 1. Consider a recent event. Obama asks Israel to extend the construction freeze for TWO miserable months only, and in return offers to give away his store: Israel will not be asked again for extension, higher annual dollar grants to Israel, and guaranteed US veto for a year against anti-Israel resolutions (including even creation/admission of a Palestinian state). It was a No-Brainer. Easy to do for a great gain. Why was the offer refused? This would not have been against Papa Netanyahu's ideology, and in fact Israel's refusal hurt Netanyahu in his Iran dream because Obama is now outraged. For a clue, recall that Lieberman announced twice publicly that there would be NO extension of the freeze even as the internal discussions in the government were still going on. Conclusion: Netanyahu does not dare act against Lieberman's strong wishes./ 2. The "Netanyahu family" theory I don't buy because Netanyahu said in a speech (2009) that he is accepting the two-states solution. This must have antagonized the family to no end./ 3. The whole conduct of Netanyahu enrages the US, which hurts any Israeli "Iran operation", so throw this theory away.// CONCLUSION: Netanyahu is paralyzed by political fears. It is not a personal matter with Lieberman, but firing that bully might cost Netanyahu the next elections within the Right. Of course, if Netanyahu gets to make peace until then, he will win the Right, but then perhaps Livni will quit on him and he wouldn't make peace? What them? The paralysis is induced just by plain political fear. Netanyahu is simply a major political coward.
Woman moderately wounded by firebomb thrown at her car in north J'lem (Haaretz)
from the article: New Palestinian peace plan may force Israel into action