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Palestine upset Israel over new peace deal

Published:Monday | June 15, 2009 | 2:10 PM

Palestinians are upset over the terms set out for a new peace deal by the Israeli Prime Minister Benjamin Netanyahu.



However, the Israeli leader has gained approval from the US for at least accepting Palestinian statehood.



Netanyahu responded to weeks of US pressure by endorsing the establishment of a Palestinian state for the first time.



But Palestinians are disappointed by the prime minister\'s demand that they recognise Israel as a Jewish state.



They are also displeased with his failure to halt Jewish settlement expansion in the occupied West Bank.



The European Union has described Netanyahu’s move as a step in the right direction.



But it says that’s not enough to improve EU-Israel ties.