10.0pt"> Palestinian terrorists are changing tactics and putting more effort into attacking Israeli settlers and soldiers in Palestinian territory. These targets are easier to hit and garner less ill will from potential allies overseas (especially in Europe.) There are about 200,000 settlers living among three million Palestinians. The settlers are armed, and often aggressive in their relations with local Palestinians. The army stations thousands of soldiers around some settlements to provide additional security.
A dispute between liberals and conservatives over government spending on settlements in Palestinian territory is apparently going to bring down the parliamentary style government and cause new elections. The liberals forced the issue and will probably take the heat for it. The new elections will probably result in a government even more hard nosed in it's reaction to Palestinian violence.
The two years of violence have killed 2,629 (1,943 Palestinians and 637 Israelis). Even with all that, Israel has a death rate from violence that is lower than most European nations.