There is an immense housing shortage in Jerusalem,

I often hear them accuse Israel of Judaizing Jerusalem. That's like accusing America of Americanizing Washington, or the British of Anglicizing London. You know why we're called 'Jews'? Because we come from Judea.

First of all, Arafat is wrong. Jerusalem is Israel's capital, will never be divided, and will remain the capital of the State of Israel, the capital of the Jewish people, for ever and ever.

In my office in Jerusalem, there's an ancient seal. It's a signet ring of a Jewish official from the time of the Bible. The seal was found right next to the Western Wall, and it dates back 2,700 years, to the time of King Hezekiah. Now, there's a name of the Jewish official inscribed on the ring in Hebrew. His name was Netanyahu.

We don't point a pistol at our own forehead. That is not the way to conduct negotiations.

The right combination is between a free economy and social policy that addresses the needs of society and creates equal opportunity.