"...The settlements issue is the most pressing item on the agenda, because the current moratorium is set to expire by the end of September. Without some new agreement on even a limited settlement freeze, analysts fear, the new talks could break down only weeks after they begin -- dealing a perhaps mortal blow to President Obama's Middle East ambitions. Peled indicated that there was a deal to be worked out, and we've heard that a compromise is in the works that would expand exemptions for building in areas that are expected to fall on the Israeli side of the line after final borders are established.
But for now, the Israeli government is making clear that the settlement freeze in place, which the Palestinians have argued is not being strictly enforced, is not guaranteed to continue. Netanyahu is under pressure from members of his coalition to let the freeze expire."The latest moratorium that this government took about 10 months ago was a one-time gesture with the aim of jumpstarting the process," Peled said...."