The Israeli Prime Minister has decided to halt peacemaking contacts with the Palestinian authorities until Israel's election on 6 February. Ehud Barak's office said that security contacts for calming the situation on the ground, stopping the violence and thwarting terrorism would continue.
Senior Palestinian officials had said that Mr Barak and Palestinian President, Yasser Arafat, would hold a summit in Stockholm on Tuesday. But the Israeli statement said that Mr Barak had informed Sweden's leaders and UN Secretary-General, Kofi Annan, of his decision. Opinion polls predict Mr Barak will lose the prime ministerial election to right-wing Likud leader, Ariel Sharon.
At the World Economic Forum in Davos, Yasser Arafat reaffirmed the Palestinians' commitment to peace with the Israelis, but lashed out at Israel's "fascist military aggression". In a joint statement with former Israeli Prime Minister, Shimon Peres, Mr Arafat also called on the international community to protect his people. Mr Peres, widely viewed as the Israeli diplomat who enjoys the best relationship with Mr Arafat, blamed the breakdown in the peace process on the "so-called intifada and acts of violence - partly uncontrolled by the Palestinian Authority."
Israeli and Palestinian negotiators ended six days of intensive talks without reaching the peace agreement they had hoped for. Ehud Barak had been hoping to sign an agreement before he stands for re-election. In a statement after the discussions ended, the two sides said that trust had been re-established and progress had been made. The Israeli Foreign Minister, Shlomo Ben Ami, said that the pressure was still on to make further rapid progress.
But the Israelis and Palestinians wrapped up the peace talks declaring they were closer than ever to peace, even though they failed to announce any agreement. The fate of the some 3.7m Palestinian refugees is one of the key sticking points, along with control of Jerusalem, borders and Jewish settlements as well as water and security issues. Ehud Barak has repeatedly insisted on his refusal to accept a right of return to the state of Israel for the refugees, Palestinians who were made homeless by the creation of the Jewish state in 1948 or their descendants.
Meanwhile, there was more unrest in the southern Gaza Strip as Israeli soldiers opened fire on four Palestinian boys today, leaving a 12-year-old seriously injured with a bullet lodged in his brain.
