quality:corruption
Bar-Ilan speech

In June 2009, Netanyahu delivered an address at Bar-Ilan University, known as the "Bar-Ilan speech", at Begin-Sadat Center for Strategic Studies, that was broadcast live in Israel and across parts of the Arab world, on the Israeli–Palestinian peace process. He endorsed for the first time the notion of a Palestinian state alongside Israel. Netanyahu's speech could be viewed in part as a response to Obama's 4 June speech at Cairo. Yedioth Ahronoth claimed Obama's words had "resonated through Jerusalem's corridors".

As part of his proposal, Netanyahu demanded full demilitarization of the proposed state, with no army, rockets, missiles, or control of its airspace, and said Jerusalem would be undivided Israeli territory. He stated that the Palestinians should recognize Israel as the Jewish national state with an undivided Jerusalem. He rejected a right of return for Palestinian refugees, saying, "any demand for resettling Palestinian refugees within Israel undermines Israel's continued existence as the state of the Jewish people." He stated that a complete stop to settlement building in the West Bank, as required by the 2003 road map for peace, was impossible and the expansions would be limited based on the "natural growth" of the population, including immigration, with no new territories taken. Nevertheless, Netanyahu affirmed that he accepted the road map. He did not discuss whether or not the settlements should be part of Israel after peace negotiations, simply stating that the "question will be discussed".

In a response to Obama's statements in his Cairo speech, Netanyahu remarked, "there are those who say that if the Holocaust had not occurred, the State of Israel would never have been established. But I say that if the State of Israel would have been established earlier, the Holocaust would not have occurred." He said, "this is the homeland of the Jewish people, this is where our identity was forged." He stated that he would be willing to meet with any "Arab leader" for negotiations without preconditions, specifically mentioning Syria, Saudi Arabia, and Lebanon. The address represented a new position for Netanyahu's government on the peace process.

Right-wing members of Netanyahu's governing coalition criticized his remarks for the creation of a Palestinian State, believing all of the land should come under Israeli sovereignty. Likud MK Danny Danon said Netanyahu went "against the Likud platform", while MK Uri Orbach of Habayit Hayehudi said it had "dangerous implications". Opposition party Kadima leader Tzipi Livni remarked that she thinks Netanyahu does not really believe in the two-state solution at all; she thought he only said what he did as a feigned response to international pressure. Peace Now criticized the speech, stating it did not address the Palestinians as equal partners in the peace process. The Secretary General of Peace Now, said, "It's a rerun of Netanyahu from his first term".

On 9 August 2009, speaking at the opening of a government meeting, Netanyahu repeated his claims from the Palestinians: "We want an agreement with two factors, the first of which is the recognition of Israel as the national state of the Jewish people and (the second of which is) a security settlement".

Netanyahu's speech provoked mixed reaction from the international community. The Palestinian National Authority rejected the conditions on a Palestinian State. Saeb Erekat said, "Netanyahu's speech closed the door to permanent status negotiations". Hamas spokesman Fawzi Barhoum said it reflected a "racist and extremist ideology" and called on Arab nations to "form stronger opposition". Palestinian Islamic Jihad labeled it "misleading" and demanded stronger opposition to Israel from Arab nations. According to The Jerusalem Post, some leaders advocated a third intifada in response to the speech.

The Arab League dismissed it, declaring that "Arabs would not make concessions regarding issues of Jerusalem and refugees" and that "we know his history and style of evasion", adding that the Arab League would not recognize Israel as a Jewish state. Referring to Netanyahu's demand that Palestinians recognize Israel as the state of the Jewish people, Egypt's president Hosni Mubarak remarked, "You won't find anyone to answer that call in Egypt, or in any other place." Issuing a less blunt response, the Egyptian Foreign Ministry said the speech was "not complete" and it hoped for another, "different Israeli proposal...built on the commitment to the two-state solution". Syrian state media condemned the speech and wrote "Netanyahu has confirmed that he rejects the Arab peace initiative for peace along with all the initiatives and resolutions of the Security Council to relative peace."

Lebanese President Michel Suleiman said "Arab leaders should be more united and preserve the spirit of resistance to face the Israeli stands regarding the peace process and the Palestinian refugee issue." He called on the international community to exert more pressure on Israel to accept the Arab Peace Initiative, as he said "Israel still has a will of military confrontation which can be proved in its offensives on Lebanon and the Gaza Strip." Jordanian officials said "The ideas presented by Netanyahu do not live up to what was agreed on by the international community as a starting point for achieving a just and comprehensive peace in the region." Former Iranian president Mahmoud Ahmadinejad referred to the speech as "bad news".

The Czech Republic praised Netanyahu's address. "...this is a step in the right direction. The acceptance of a Palestinian state was present there", said Foreign Minister Jan Kohout, whose country held the EU's presidency at the time. President Obama's press secretary, Robert Gibbs, said the speech was an "important step forward". Obama stated that "this solution can and must ensure both Israel's security and the Palestinians' legitimate aspirations for a viable state". Swedish Foreign Minister Carl Bildt stated that "the fact that he uttered the word state is a small step forward". He added that "whether what he mentioned can be defined as a state is a subject of some debate". France praised the speech but called on Israel to cease building settlements in the West Bank. French Foreign Minister Bernard Kouchner stated, "I can only welcome the prospect of a Palestinian state outlined by the Israeli prime minister." The Foreign Ministry of Russia called the speech "a sign of readiness for dialogue" but said "it does not open up the road to resolving the Israeli–Palestinian problem. The conditions on the Palestinians would be unacceptable."