Palestinian Prime Minister Salam Fayyad recently announced that his government intends to declare an independent Palestinian state in the summer of 2011, even if no agreement is reached with Israel. This statement obviously generated unease in Israel, and not only among supporters of Benjamin Netanyahu's government - especially as it was accompanied by hints that European countries, and even the European Union itself, would recognize such a unilateral declaration of independence.
The unease and the concomitant apprehensions are understandable, but they may well be fundamentally misplaced. After all, anyone with eyes in his head, unless he is a prisoner of empty slogans or committed to political correctness, must admit that even if negotiations between Israel and the Palestinians resume, the prospects for an agreement are nil. And this is not due solely to the positions of the Netanyahu government: Its predecessor, led by Ehud Olmert and Tzipi Livni, negotiated with Palestinian Authority President Mahmoud Abbas for two whole years and made him very generous offers, but still never managed to reach an agreement.
The reasons are clear: On the core issues - borders, Jerusalem, refugees - the gaps between even the most moderate positions on both sides are so wide that no rhetoric, and no assertive American involvement, is capable of bridging them. Anyone who thinks otherwise is indulging in pipe dreams.
Therefore, we should seriously consider what would happen if the Palestinians were indeed to declare a state and win relatively broad international recognition. First of all, it is clear that Israel would announce that this unilateral declaration nullifies all prior agreements between it and the Palestinians, from Oslo on; that it is released from all the obligations it has undertaken, including the economic ones; and that it will henceforth relate to the areas under Palestinian control as foreign territory. It is also clear that all Israeli obligations arising from its military control of the territories would be abrogated under both Israeli and international law. Not everyone would accept this argument, but it would not be possible to ignore it.
A unilateral Palestinian declaration would not change the situation on the ground. By itself, such a declaration could not bring about the evacuation of the settlements, regardless of whether the Palestinians say they accept the settlers as citizens of their state or continue to claim that the settlements are illegal. The same of course goes for East Jerusalem, which the Palestinians would presumably say they see as their capital.
http://www.haaretz.com/hasen/spages/1164008.html