It appears that there are two questions being raised here: Is a nuclear Iran a threat to Israel, and what did Livni mean by her statement? My answer to the first question is a definite yes. My answer to the second question is that Livin obviously feels that Israel has other equally pressing issues to deal with that must not be pushed aside by dealing with the Iranian threat. These issues such as fostering relations with moderate Arab states, trying to draw Syria away from Iran and Hezballah, and most importantly, laying the groundwork for an agreement with the Palestinians must not only be solved at any rate, but will also serve to weaken and isolate Iran and help attain the goal of dealing with the Iranian threat. If that is what Livni wished to achieve, than she was correct, but at this time Israel has no statesman or stateswoman capable of dealing with the Iranian threat. That fact is almost as frightening as the threat itself.
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from the article: Livni behind closed doors: Iran nukes pose little threat to Israel