The greatest tragedy of the Israeli-Palestinian conflict is that everyone knows how it will end. We will divide up the region.

When I introduced my economic plan for the first time, people had mixed views because it's the largest cut in the history of Israeli budgets. We have a big deficit caused by the fact that the former government took upon itself too many obligations.

If you ask me 'What is the one great move you can make to improve the Israeli economy?' of course it will be signing an agreement with the Arab world about the Israeli-Palestinian conflict. This will change everything.

When you look at the history of wars, they ultimately revolve around one claim: "My god is better than yours."

The greatest tragedy of the Israeli-Palestinian conflict is that everyone knows how it will end. We will divide up the region.

Israel is a long way from facing a threat to its very existence. We are too strong, both economically and militarily, for that. If anything threatens Israel, it is this form of paranoid thought that makes us think: "Oh God, they're going to kill us in two seconds! What should we do?"

I don't think Israel's becoming more religious, I think its politics is becoming more religious. There's a difference.