If we persist in the current course, it is bound to come, and the longer it is postponed, the more Israel will find itself isolated in the international arena. Declaration of Palestinian state should be interpreted as a certain sign of failure of PM Netanyahu's policy. And in fact, one of the arguments against declaring a state in May is that it would help PM Netanyahu's chance to win the elections. Thus, the Israeli hard-liners can always prove they are right, and the Palestinians are damned if they do and damned if they don't. But while Mr. Shnitzer is busy proving that the government is correct, Israel is losing respect around the world, and is reaping the 'benefits' of its 'correct' policy in UN condemnations and in US arms deals with Egypt and Saudi Arabia.
Economic stagnation is less dramatic, but almost as dangerous as international recklessness.
We can pretend all we want that there is no problem, but Israel will pay the price in terms of emigration and weakness. Those who are concerned about security should remember that in almost every modern war, the country with the strongest economy was the eventual victor. A year without economic progress cannot be made up so easily in the future. It is past time to take off the virtual reality spectacles and deal with the problems as they are.