Haaretz - ... In the area of foreign relations, Avigdor Lieberman is playing the role of Benjamin Netanyahu and Ehud Barak's crazed watchdog. Under the cover of his seemingly fanatic statements, they can continue to pretend that they are interested in peace negotiations. In fact, both are convinced that only on the foundation of eternal conflict can Israel continue to survive, or at least that their own survival in positions of power depends on the continuation of the conflict (actually, they would be wise to be cautious, because given the current pace of events, Lieberman is liable to claim the fruits of their labors and snatch the premiership ).
... It's no accident that [Israeli leaders] are insisting on blowing up the "problem of Arab citizens of Israel" to monstrous proportions and depicting it as a critical matter in the talks. The ploy seems complex, but is actually quite simple: Israeli Arabs are described as a subversive group and turned into an obstacle impeding a peace agreement with the Palestinians, provoking ultra-nationalist panic. In this way, the government wins public support for toughening its demands and escalating the country's stance of isolationist self-involvement. The public has been persuaded that it lives under the threat of the Iranian bomb and Hezbollah attacks, along with Palestinian-Muslim encroachment and domination and the proliferation of foreign laborers. In light of the panic, the government has an easy time passing its series of so-called nationalist bills. Read more