Haaretz writes: "Hamas leader Khaled Meshal declared this week that his movement is switching over from the armed struggle to a popular struggle, and that its agreement with Fatah includes the establishment of a Palestinian state within the 1967 borders with East Jerusalem as its capital, without renouncing the right of return. According to Meshal, a rational reading of reality, including the situation in Syria and the achievements of the popular revolutions, led the organization to reassess its path, to sign the reconciliation deal with Fatah and change the struggle's strategy. These are remarkable statements that highlight the extent that political events can bring about strategic turnarounds, even ideological ones. As the Palestinian leadership reads the regional political map correctly and plans for the next stage in its efforts to achieve international recognition for a Palestinian state, Israel persists with its timeworn concepts that have led to the rejection of every diplomatic move. The government must not ignore the declarations by the Hamas leadership and reject the chance of achieving a cease-fire with the organization."

The Jerusalem Post comments: "Analysts forecast that 2012 will test our pluck as well, with a looming credit crunch, compounded by increasing populist pressures on the economy. That could be bad news for almost every Israeli household, as one way or another (quite beyond our individual control), we're all invested in bonds - be it via pension, provident, mutual or educational funds. There's too much instability overseas not to affect us, and our markets react in teeter-totter motion to negative sentiment, particularly from the Euro Zone countries. It has become a fad among our tycoons to welsh on debts to bondholders, and more and more panic and bail out, sending prices plummeting and turning quality bonds to junk. But even the aforementioned ominous clouds have some silver linings. The state comptroller's active interest appears to have been piqued and he has opened an investigation."

Three papers discuss various issues related to the ongoing controversy over discrimination against - and the exclusion of - women in the public sphere, as instigated by certain extreme ultra-orthodox elements:

Yediot Aharonot strongly criticizes reports that PM Netanyahu is considering the division of Beit Shemesh into two separate cities and believes that "dividing Beit Shemesh would legitimize racist behavior, belligerence, violence, and those who demand that women cover themselves in burkas, push them to the back of the bus and encourage their exclusion."

Ma'ariv contends that "The problem is that the State of Israel is growing, cultivating and expanding ideological sectors that have set for themselves the goal of eliminating the democracy that is its foundation," and says, "Israel needs to stop investing the tax funds of the majority that works and serves in cultivating wild growths that aspire to its demise." The author says that "Israel encourages births more than any other country in the world and the attitude of an eight-child family is one that entails poverty. Normal governments do not encourage poverty because poverty is one of the bases for extremism. The conclusion is that child allowances must be drastically cut. If over 50% of first-grade children are ultra-orthodox and Arab, who is supposed to serve in the IDF in 12 years? Over half of those of draft age will be exempt. This figure alone underscores how Israel is, via child support payments, committing a suicidal act. Budgets for rabbis and yeshivas that play with dangerous ideas such as allowing non-Jews to be killed - must be cut off. Record budgets for ultra-orthodox yeshivas will stop. The core curriculum must be taught in every school that receives so much as NIS 1 from the state; state education will be generously expanded. A maximum number will be set for full-time yeshiva students. The politicians must also know how to reintegrate populations back into the workforce." The paper cautions that "Extremism will not be defeated by a media onslaught. Political courage is necessary here."

Yisrael Hayom calls for assertive and efficient police enforcement action, but avers that "The police alone are insufficient. The Israeli majority must allow the ultra-orthodox to live as they please, but it must also challenge them...They want to plant roots in Ramat Aviv? Please, it is their right to offer their spiritual wares to passers-by. But the majority must put real challenges to them: Computers. Internet. Math and English lessons. Children's literature groups. The time has come to set up cultural 'volunteers corps' with a balanced and sane, yet modern message. Let them compete with each other, and let the best win."

[Ariela Ringle Hoffman, Nadav Eyal and Dan Margalit wrote today's articles in Yediot Aharonot, Ma'ariv and Yisrael Hayom, respectively.]