Israeli FM: 2 state solution reached an impasse

The two-state solution with Palestinians has reached an impasse, Israeli Economy and Trade Minister Neftali Bennet said late Monday, calling on the Israeli government to annex \'Area C\' to the West Bank. \"The idea of establishing a Palestinian state within Israel is no longer the solution, while investing to improve the infrastructure in the West Bank is,\" said Bennet in remarks to the Israel radio. Bennet is the leader of Bayit Yehudi (Jewish Home) whose political views have been described as far-right, representing the settlers in the Israeli government by 12 members of the Israeli Knesset. \"The problem is with the Palestinians,\" noted Bennet, stressing \"Therefore, we have to coexist instead of finding a solution as this story is over, and we have to annex Area C immediately to the West Bank.\" Israel will fund economic initiatives to improve the life conditions of both the Jews and Palestinians in Area C rather than invest in peace conferences, he added. \"We can build industrial complexes and reform intersections in the West Bank within the framework of this economic program,\" he said. \"I agree with Minister Bennet as the two-state solution seems hard to implement,\" announced Deputy Foreign Minister Ze\'ev Elkin in remarks broadcast on Israeli radio. \"Everyone has to suppose that the concept of a Palestinian one-state has died,\" Elkin noted, stressing \"I would rather see Israel go through war than see that happen.\" \"It is significant for Israel to invest more money on public relations,\" said Elkin, also member of the Knesset for Likud led by Benjamin Netanyahi, stressing that \"the ministry\'s budget is of 9 million shekels, while the Palestinian budget is worth a total of USD 200 million obtained by European donations.\" Area C is one of the three temporary administrative divisions in the West Bank along with Area A and B created by the Oslo II Accord in 1995, which was a key agreement governing several aspects of the Palestinian territories of Gaza Strip and the West Bank. Run under full Israeli civil and security control except over Palestinian civilians, Area C in the West Bank that includes East Jerusalem, contains Israeli settlements, buffer zones, strategic areas and almost all of the Jordan Valley and the Judean Desert.