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from The Great Debate:

Here’s why Israel loses no sleep over Islamic State

A masked man speaking in what is believed to be a North American accent in a video that Islamic State militants released in September 2014 is pictured in this still frame from video

At first sight, it seems that Israel is just as preoccupied with the rise of Islamic State as anyone else. Israeli media report diligently on the extremist group’s assault on the Kurdish town of Kobani and run at least a story every few days on its atrocities. Prime Minister Benjamin Netanyahu references Islamic State frequently, as do other Israeli ministers. And the stories of two Palestinian citizens of Israel who died fighting for the group have been recently featured in the press.

Still, Israel remains the least concerned and least directly threatened country in a region increasingly rocked by Islamic State’s advance. It certainly does not see the group as an external threat. Shocking though the events in Syria and Iraq are, Israel is far beyond the range of even the most sophisticated of Islamic State’s weapons. The group’s immediate territorial interests do not extend to anywhere near Israeli borders, and its support in areas adjacent to Israel is still negligible.  What’s more, unlike many militant groups and states in the region, Islamic State has declared itself emphatically disinterested in intervening in the Israeli-Palestinian conflict, preferring instead to draw its support from Sunni revanchism and introducing a semblance of order into war-torn regions of Iraq.

Islamic State also does not yet pose an internal threat to Israel. Unlike most countries bordering Syria, Israel has not been politically or demographically unsettled by the civil war there. The diversified systems of control employed by Israel – some liberal democracy and some military rule -- have cemented differences among the country’s constituencies disgruntled with the Israeli government. The divisions have precluded the emergence of a broad uprising similar to those that constituted the Arab Spring. The relatively short, highly militarized border between Israel and Syria has prevented the influx of refugees into Israel, as well as any significant spread of the fighting.

In the absence of incentives to change policy, Israel remains determined to display an official disinterest in Iraq and a staunch neutrality toward Syria. Although the government has often expressed sympathy for victims of the Syrian civil war and offered some of them medical treatment, and has on one or two occasions hit targets in Syria, Israel has been careful to signal to Syrian President Bashar al-Assad that it considers him a relatively reliable neighbor and would not work actively to replace him.

from The Great Debate:

Israel appropriated 1,000 acres of the West Bank. Why now?

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Last week, Israel announced that it was appropriating nearly 1,000 acres of private Palestinian land near Bethlehem. The seizure, which one anti-settlement group called the largest in 30 years, was condemned by Palestinians, the United Nations, and criticized by the United States.

Israel has said that the move is retaliation for the June kidnapping and murder of three Israeli teenagers. Settlement has long been considered a fair response to Palestinian attacks by some parts of Israeli society, and appropriation of Palestinian land has been a consistent policy of every Israeli government since Israel became a state in 1948. In the West Bank alone, close to 250,000 acres were appropriated since 1979, using a legal mechanism based on an interpretation of Ottoman law.

from MacroScope:

Jaw jaw and war war

An Ukrainian serviceman is seen next to a sight for a gun near the eastern Ukrainian town of Luhansk

Pro-Russia separatists at talks with representatives from Moscow and the OSCE in Minsk said they would be prepared to stay part of Ukraine if they were granted "special status", which is unlikely to be acceptable to Kiev.

The talks will continue later in the week and come as the Ukrainian military faced a run of reverses on the battlefield which Kiev says have been engineered by the intervention of at least 1,600 Russian combat troops.

from The Great Debate:

Peace may be the true threat to Hamas, Israel’s leaders

Relatives of a Palestinian woman, who medics said was killed in an Israeli air strike, mourn during her funeral in Khan Younis

It’s time to wonder whether Israel and Palestine will ever be able to move out of the moral abyss into which they’ve plunged themselves, and address the threat of peace.

“Threat” is the right term. Because peace is dangerous for leaders in the Middle East.

from MacroScope:

Euro zone recovery snuffed out

A BMW logo is seen the wheel of a car in Mexico City

A glut of euro zone GDP data is landing confirming a markedly poor second quarter for the currency area.

The mighty German economy has shrunk by 0.2 percent on the quarter, undercutting the Bundesbank’s forecast of stagnation. Foreign trade and investment were notable weak spots and the signs are they may not improve soon.

from MacroScope:

All eyes on Putin

Russia's President Vladimir Putin talks to reporters during a meeting in Brasilia

Russian President Vladimir Putin will meet his top security officials prior to visiting annexed Crimea on Thursday with members of his government.

One way or another, with Ukrainian government forces encircling the main pro-Russian rebel stronghold of Donetsk, matters are coming to a head. Putin must decide whether to up his support for the separatists in east Ukraine or back off.

from MacroScope:

Moment of truth in Ukraine

A Ukrainian serviceman guards a checkpoint near Donetsk

Financial markets perked up on Monday after Russia called off military exercises near the Ukraine border but was the confidence well founded?

NATO’s chief told Reuters there was a "high probability" Russia could launch an invasion of Ukraine where the government said it was in the "final stages" of recapturing Donetsk, the main city held by pro-Russian rebels, a battle that could be a decisive turning point in the biggest confrontation between Russia and the West since the Cold War.

from MacroScope:

End game in east Ukraine?

A Ukrainian serviceman sits on a military armoured vehicle near Donetsk

Ukrainian government forces say they are preparing for the final stage of recapturing the city of Donetsk from pro-Russian separatist rebels after shelling its outskirts and making significant gains over the weekend.

The city faces increasing shortages of food, water and electricity. Vladimir Putin must now decide whether to leave the rebels to their fate or step up his support.  Kiev said on Saturday it had headed off an attempt by Russia to send troops into Ukraine under the guise of peacekeepers accompanying a humanitarian convoy sanctioned by the Red Cross. Moscow dismissed the allegation as a "fairy tale".

from John Lloyd:

The less well Muslims and Jews actually know each other, the more hatred grows

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In the small town of San Dona di Piave near Venice last Friday, an imam, Raoudi Albdelbar, asked Allah to, "Kill them all (the Jews), down to the last one; make poison of their food; transform the air that they breath into flames, and put terror in their hearts.” The imam was so proud of his sermon that he made a video of it and posted it on his Facebook page -- from where it went viral. Earlier this week, Italian antiterrorist police showed up and arrested the imam on charges of inciting violence, and began the process of expelling him to his native Morocco.

There's a doleful, five-century-old parallel to the iman’s prayer. In his “Trials of the Diaspora,” Antony Julius, a polymath British lawyer, has taken Shylock’s trial in the Merchant of Venice as the ur-trial of diaspora Jews, seeing in it a subtle re-imagining of the old blood libel. In Shylock's pitiless pursuit of a pound of flesh cut from the merchant Antonio's body, Julius detects another instance of Jews seeking Christian blood.

from MacroScope:

When Mario met Jean-Claude

European Central Bank President Draghi and Eurogroup President -Juncker talk during a news conference in Nicosia, Cyprus

A day before the European Central Bank’s monthly policy meeting, ECB President Mario Draghi will travel to Luxembourg for talks with incoming European Commission president Jean-Claude Juncker. Oh to be a fly on the wall.

Some in the ECB are concerned that ultra-low sovereign borrowing costs and Draghi’s “whatever it takes” promise has relieved pressure on euro zone governments to carry on with structural economic reforms.
Juncker has signalled he is comfortable with a Franco-Italian drive to focus on growth and job creation rather than cutting debt.

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