Go the the UN and seek that recognition. If they win that vote then they are a state, and Israel can not keep pretending that this is "disputed territory" or that the settlements are somehow "legal". If they don't win that vote then they may as well give up on the two state solution and go for One Man One Vote. Either way it breaks the status quo, which for the Palestinians is simply a slow and painful strangulation. .
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Nine people killed, 26 wounded in Baghdad bombs, Iraqi police and medics say (Reuters)
from the article: Abbas: Palestinians will seek UN recognition, despite U.S. pressure