I have always been conscious of the importance and the strength of nationalism, and this has led me straight to the acknowledgment of the nationalism of the Palestinian people. I believe there is no way around this: We have to have a solution based on two national states, which will hopefully live and grow together and establish a relationship between them in something like a European Union.

There are lots of grounds for hope in Israeli society. We are seeing Israelis getting fed up with war, looking for solutions. The youngest soldiers are refusing to serve in the Occupied Territories. Some are volunteering for army combat units but are refusing to serve in the Occupied Territories. We have the elite of the Israeli army, the air force pilots, some of them refusing orders which they consider illegal.

How do we solve the problem by allowing a number of refugees to return to Israel, allowing a number of refugees to return to the Palestinian state, and allowing a number of refugees to settle, with general compensation, where they want to settle? It is not an abstract problem. It involves four million human beings, and more than fifty years of various sorts of misery. But it is not an insolvable problem. It involves some good will, and a readiness to give up historic myths on both sides.

You must get Israelis to understand the feelings and the hopes and the traumas of the Palestinians. You have to get the Palestinians to understand why Israel is behaving the way it does: What is the legacy of the Holocaust, what are the fears of average Jewish people?

There are lots of signs that average Israelis want peace. But after such a long war - this conflict has been going on now for 120 years - you have a fifth generation being born into it on both sides. Such a conflict creates hatred, fears, stereotypes, and demonizations of the other. It would be an illusion to believe you can put an end to this overnight.

In order to put an end to the occupation, you must make peace between the Israeli and Palestinian people. This is the real aim, this is the real task.

The solution is this: There will be a state of Palestine in all of the Occupied Territories of the West Bank and the Gaza Strip. The Green Line, the border that existed before 1967, will come into being again. Jerusalem will be the shared capital - East Jerusalem will be the capital of Palestine, West Jerusalem will be the capital of Israel. All settlements must be evacuated. The security must be arranged for both people, and there must be a moral solution and a practical solution.