Several Chilean journalists over the weekend continued to blame last week’s fire in one of the countries nature reserves on Rotem Singer, an Israeli backpacker, despite increasing doubt of his involvement by the authorities. One paper, El Cidudadan, argued that Singer was part of an Israeli group sent to set the stage for an Israeli invasion of Chile. “It is easy to imagine... the Israeli military... arriving in the middle of nowhere in no man’s land to claim power, accommodation and natural resources,” the paper wrote. The leader for the 25,000 strong Jewish community in Chile, Shai Agosin dismissed the article and said that the comments were both anti-Semitic and ridiculous.

Israeli defense budget to be increased
Israeli Prime Minister Benjamin Netanyahu announced on Sunday that the Israeli defense budget will receive a slight increase, reversing an earlier position that military spending would be cut in order to finance social reforms. "I have reflected on this question, but in view of what has happened in the region, I have reached the conclusion that cutting the defense budget would be a mistake, even a big mistake,” Netanyahu told reporters. During a briefing to members of the cabinet, he added; “any sensible person can see what is happening around us. ... All these changes have strategic implications for the national security of the state of Israel, for our ability to face the new challenges and instability. (The IDF) is the shield of the country, which is why we must increase its means." As if to emphasize the continuing threat, the IDF announced late Sunday that soldiers operating at the Salem crossing near Jenin had arrested four Palestinians and confiscated 11 pipe bombs and other weapons, stopping what might have been a major terrorist attack.

Lebanon declares intention to explore for natural gas
Lebanon declared over the weekend that it would seek tenders to explore for natural gas reserves off Lebanon’s coast, despite an ongoing dispute with Israel about the maritime border. "Our target is to begin within three months," Energy Minister Gebran Bassil told AFP. "Every big oil company has begun initial talks to explore offshore drilling and bought data to that end. We are working on making potential drilling a factor of stability, not a factor of conflict or instability. I believe that Israel has no interest in threatening our oil resources. It has resources itself -- it's a balance of power, and Lebanon now has enough power to protect its own resources."

Arab League will continue Syria monitoring mission for now
A powerful squadron of Russian warships, including the flagship of the Russian fleet, dropped anchor in the Syrian port of Tartus on Sunday in what the regime of president Bashar Assad declared was a show of solidarity by Moscow, but Russia defense officials insisted that the six day port call was a routine stop for rest and resupply. Meanwhile, the Arab League issued a statement on Sunday that it will continue the mission of monitors for now and that it was not yet ready to refer the Syrian situation to the UN, insisting that it was still working towards ending the violence which has killed over 6,000 people, including several dozen who were killed in clashes over the weekend and 26 killed by a mysterious car bomb in the heart of Damascus on Friday. The regime has blamed the bomb on Al Qaida, but opposition groups claim this is a ploy designed to deflect attention from the regime’s brutality.

Jaffa Christian leader slain
Four suspects from a rival Arab Christian family are in custody following Friday’s stabbing murder of Gabriel Cadis, 61, who was chairman of the Jaffa Orthodox Church Association. Cadis was stabbed to death by a man dressed up as Santa Claus, during a parade to mark the Orthodox celebration of Christmas. “The suspects have been in a past dispute with the murder victim,” a police source said on Sunday. “The possibility of a financially motivated crime is being considered.”

Islamists dominate final round of voting in Egypt
Although several races will need to be decided by runoffs, Egypt’s Moslem Brotherhood looked set to dominate the third and final round of parliamentary elections in Egypt over the weekend. The Brotherhood and the even more extreme Salafi al-Nouor party, along with other Islamist factions, garnered nearly two thirds of the seats in the 498-seat lower house elections, giving them momentum going into elections for the upper house scheduled for later in the spring and the presidential vote scheduled for the summer. Additionally, a 100 member committee will draw up a new constitution for Egypt will be appointed by the new legislative assembly. Meanwhile, anecdotal evidence out of Egypt suggests that vigilante groups of ‘morality police’ have begun to intimidate Egyptians, especially women, into adhering to strict Islamic dress codes and other behavior, similar to the situation in Saudi Arabia.

Senior defense officials announced on Thursday that together with the US military it will hold the massive "Austere Challenge 12" joint missile defense exercise. "The exercise scenario involves notional, simulated events as well as some field training and is not in response to any real-world event," said a military statement."The U.S. European Command and the Israel Defense Forces periodically conduct routine exercises in Israel. These exercises, which are part of a long-standing strategic partnership, are planned in advance and part of a routine training cycle designed to improve the interoperability of our defense systems."

Syria continues to smolder despite monitors
Commander of the Syria Free Army, Riad Al Asaad, declared that the regime of Syrian President Bashar Assad would be forced out of power by militarily means, Al Jazeera reported Friday. He added that Arab League monitors should leave Syria immediately because of the "failure of their mission." The same report added that, according to opposition groups, at least another 31 people were killed by forces loyal to the regime of president Bashar Assad on Thursday, including 13 who were killed in the northeastern city of Deir ez-Zor. Violence has also spread to the heart of Damascus, which many analysts have described as a tipping point which could lead to an acceleration in the regime’s fall. On Thursday, Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani admitted during a meeting with UN General Secretary Ban ki-Moon that “we must evaluate the types of mistakes (the Arab League monitors) made and without a shadow of a doubt I see mistakes, even though we went in to observe, not to stop the violence.” He added a plea for assistance from the UN in making necessary adjustments.

Jordan under pressure from Islamists
Islamist movements are gaining momentum in Jordan, to Israel’s east, as representatives of the Hashamite Kingdom’s branch of the Moslem Brotherhood met with Prime Minister Awn Khasawneh on Thursday. While billed as a simple effort by the government to reach out to different political groups, the Brotherhood in Jordan has been at the forefront of protests against many of the King’s pro-Western policies, including the peace treaty with Israel. Meanwhile, the State Security Court (SSC) on Thursday released on bail another batch of prisoners from the Salafi movement who are suspected of involvement in terrorist activity, including attacks against police officers.

Moslem Brotherhood assures Washington of good intentions
Egypt’s Moslem Brotherhood has conveyed assurances to the US State Department that it has no intention of violating the Egyptian-Israeli peace treaty despite public statements to the contrary by some of its most senior officials. "We have had other assurances from the party with regard to their commitment not only to universal human rights, but to the international obligations that the Government of Egypt has undertaken," State Department Spokesperson Victoria Nuland said in a briefing. "We will judge these parties by what they do."

IDF beefs up border security
An investigation by the IDF has concluded that the terrorists who carried out the attack against Israel along the Egyptian border on 18 August, killing 8 Israelis when they opened fire on cars traveling on Road 12, just west of the Netafim crossing, were Beduin from the Sinai region. The development is deeply worrying because Beduin tribes have traditionally stayed out of the Arab Israeli conflict, suggesting a change in ideological motivation. In related news, the IDF announced on Thursday that it has invested in boats and sensors which will allow the Jewish State to guard the approaches to Israel from the Red Sea, along with increasing the numbers of troops along the border with Egypt. The network of  “The border between Israel and Sinai continues into the sea, and when one part is closed there might be someone on the other side who thinks that they can try to come into Israel a different way, maybe via the sea,” said Lt.-Cmdr. Ronen, commander of the patrol ships in the Red Sea. “We understand that our operations have significant and strategic consequences. Before the revolution in Egypt, the threats that we prepared for were for the most part theoretical.”

A senior EU diplomat, who asked to remain anonymous, said Thursday that the recent meeting between Israeli and Palestinian Authority officials in Amman Jordan was positive and that the EU had hopes for tangible progress in the near future. "A lot of things can go wrong but it was a very good meeting," the diplomat said. “The Palestinians handed over to the Israelis their proposals on border and security. The Israelis received them and promised to study them and to present counterproposals in the coming weeks. Border and security issues are priority issues to tackle settlements."

For a closer look at recent developments in the PA, click HERE (PDF)

Meanwhile, Gaza's Hamas Prime Minister Ismail Haniyeh told a press conference in Tunis on Thursday that "Palestine is not a banner that we brandish like nobody's business, it's a religious and nationalist commitment." He also thanked Tunisia’s newly elected Islamist prime minister, Hamadi Jebali, for supporting Hamas by inviting him to come to Tunisia. He also described the recent talks in Amman as "a punch in the wind." A crowd of Tunisian well wishers waved Palestinian and Tunisian flags and shouted for "the liberation of Palestine."

Haniyeh has already visited Egypt, Sudan and Turkey, with Bahrain and Qatar also on his itinerary.

“The Palestinian leadership is in a difficult position,” said Palestinian political scientist George Gaqaman. “The continuation of settlement construction obstructs the possibility of having a Palestinian state, and the Palestinians can’t boycott the political efforts. Therefore we see maneuvering, not strategy.”

Rumors that Turkish Prime Minister Recep Tayyip Erdogan has cancer have gained strength in recent days, leading to a flurry of political activity. Turkish media confirmed last month that the popular 57-year-old leader had undergone stomach surgery, but denied that any tumor had been found. “It was a preventative operation,” Turkish President Abdullah Gul said. “There is nothing more normal than someone who has undergone an operation to rest for a while.” But rumors have persisted in the Turkish blogosphere that Erdogan’s condition is much more serious than his public statements indicate. Edogan’s AKP political party include term limits which would not allow him to run for another term as Prime Minister, so it was widely expected that he’d run for the largely ceremonial post of president in 2014. Polls indicate that Turkish voters would be much less supportive of the AKP if anyone besides Erdogan was running it, leaving his potential successors in a difficult position.

Israel wins debating prize
Israeli brothers and Tel Aviv University students Omer, 26, and Sella Nevo, 22, won the World University Debating Championships for English as a second language on Tuesday, the third year in a row the prize has been won by an Israeli team. “People think, ‘Oh we’re Israelis; we have to win because we argue all the time.’ But really we win it in spite of this. Also, in spite of the stereotype, Israelis can be very good at listening and understanding people; they just have to learn how to do it,” explained debate team coach Yoni Cohen- Idov, who won the competition for Israel last year. “After the debates, we can have beers with one another and can be wonderful ambassadors of Israel. I don’t know any other competitive fields like that.”

Liberal MEP encourages Israel
Hans Van Baalen, a member of the European Parliament and President of the London based Liberal International organization, earlier this week visited Israel to deliver a speech to the Israel Liberal Group, part of an old political faction which joined with Likud in 1973. Van Baalen also met with Israeli Prime Minister Benjamin Netanyahu and told him that he is in support of granting Israel observer status in NATO along with upgrading its relations with the European Union. He described the European Parliament as being one-third pro-Israel, one-third anti-Israel, and one-third undecided and uninformed.

Google making large investments in Israel
Google Inc., one of the world’s largest corporations, has acquired several Israeli businesses, hired hundreds of Israeli employees and continues to expand its operations in the Jewish state by raising capital for Israeli high-tech start-ups. At a recent session playfully titled “Garage Geeks” David Lawee, Google’s mergers and acquisitions chief, met with over 100 Israeli companies who were hoping to attract Google’s attention. Google set up an investment fund shortly thereafter. High-tech already accounts for 47% of Israeli exports and employs hundreds of thousands of Israelis either directly or indirectly. Industry representatives say that Israeli start-ups are badly in need of foreign investment since the local capital markets, including government funding for research, have mostly dried up.

Olmert and Lupolianski formally charged
On Thursday morning, former Israeli Prime Minister Ehud Olmert was charged by Tel Aviv District Prosecutors for having accepted bribes in the Holy Land real estate affair. In 2010, police announced that they was suspected Olmert had accepted a million shekels in bribes in order to give the green light for the construction project. Olmert was then questioned about the matter, but denied all allegations against him. In addition to Olmert, Thursday also saw charges filed against Olmert’s bureau chief Shula Zaken, along with former Jerusalem mayor Uri Lupolianski. The Holy Land affair was a building project in southern Jerusalem which has gone down in history as being the worst corruption case in Israel’s 63 year old history.