I think that peace will require two states, a Palestinian state that recognizes the Jewish state.

Now, when we say we want peace, what we want is really for our Palestinian neighbours to have a demilitarized state next to us that recognizes the Jewish State. We're willing to recognize their state, the Palestinian state. But we ask them to recognize the Jewish state.

Both peoples, both nations, deserve a nation-state of their own. Palestinians, if they wish so, will go to the Palestinian state; Jews, if they so wish, can go to the Jewish state. And we'll have to have security and demilitarization agreements between us.

It simply cannot be disputed that for decades the Palestinian leadership was more interested in there not being a Jewish state than in there being a Palestinian state.

We want Israel as a democratic and Jewish state. So you have to maintain a Jewish majority, and you want to do that by legal means, by democratic means.

Our policy is very simple. The Jewish state was set up to defend Jewish lives, and we always reserve the right to defend ourselves.