This is a very wise decision since it will take the world's pressure on the Israeli goverment to stop the settlements, and will buy Israel time to show the world's governments once again that they don't have a partner who can genuinely seek peace negociations on behalf of its people. The world's goverments knows this and instead of seeking a unified Palestinian governing voice, it deflects the problem back to the Israeli goverment.
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from the article: Netanyahu declares 10-month settlement freeze 'to restart peace talks'