Palestinian negotiator Erekat calls it a 'slap in the face,' while the White House calls the speech 'an important step forward.'
Israeli Prime Minister Benjamin Netanyahu said Monday that he's ready for immediate talks with the Palestinians, but he won't endorse a Palestinian state.
Israel and the US don't want rebuilding homes to become rebuilding Hamas.
Israel to release up to 150 Palestinian prisoners later this month.
A permanent settlement in Maskiyot could hinder a faltering peace process as Palestinian and Israeli leaders meet with US secretary of State.
Israeli prime minister resigns from his post, but vows to pursue a deal with Palestinians and Syrians.
Foreign Minister Tzipi Livni is increasingly seen as the likely successor to Prime Minister Ehud Olmert.
The former president said Monday that the Islamist militants are prepared to accept the right of Israel to 'live as a neighbor next door in peace.'
Sixty roadblocks have been removed in the Palestinian territory, but critics say that isn't enough to improve life in the West Bank.