BILD: Mr. Prime Minister, Israelis greet each other with Shalom - peace. But your country has been fighting for survival, suffering from terror and war for the past 60 years. Under these circumstances, is peace for Israel not just an illusion?
PM Netanyahu: Well, it is our hope. We have achieved peace with two of our neighbours with Egypt and Jordan and we hope to complete the circle of peace. But we have to ask the question why have we not achieved a comprehensive peace while our people are praying for it every day and when Israel has made concessions that no other country has made for peace. And the true answer is: There is still a persistent refusal in some quarters of the Arab world and beyond it to recognize the right of a Jewish state to exist here in our ancestral homeland. Once this refusal is removed - the door to a permanent peace will surely be opened. All the other problems, as difficult as they are, are resolvable.
BILD: To repeat your own words: "The biggest threat for peace in the world, for mankind, originates from radical Islam and nuclear weapons." Against this background, how do you see the current development in Iran?
PM Netanyahu: I think the true nature of the Iranian regime has been unmasked. You can actually see the lack of Iranian democracy at work. This is a regime that represses its own people, supports terrorism worldwide and openly denies the holocaust, while calling for the elimination of Israel. This regime is not only a great threat to our existence, but also to moderate Arab countries, the safety of Europe and to the peace in the world.
BILD: Is it possible that a second Persian revolution could sweep away Ahmadinejad, just as the first removed the Shah?
PM Netanyahu: If they had a free choice, I have no doubt they would have a different government. What we have seen in Iran is a powerful desire on the part of the Iranian people to be free. Don't forget, Iranian elections are not like elections in Europe or Israel. First of all, the regime vets candidates. They eliminate in advance those who are unacceptable them. This is a theocratic, totalitarian and brutal state that doesn't really give free choice to the Iranian people.
BILD: Would a victory for Ahmadinejad‘s opponent Hossein Mussawi be good news for Israel?
PM Netanyahu: What would be good news for Israel is a regime that stops crushing dissent, stops supporting terror and stops trying to build nuclear weapons. It would mean a regime that stops denying the Holocaust and stops threatening Israel with destruction. There is no conflict between the Iranian people and the people of Israel and under a different regime the friendly relations that prevailed in the past could be restored.
BILD: Do you consider Europe's position towards the regime in Tehran firm enough?
PM Netanyahu: I think we have to come to grips with the fact that this bellicose regime is seeking to develop nuclear weapons which will threaten the peace in the middle east and also in the entire world. Iran sponsors terrorism and it could very well give a nuclear umbrella to terrorism and possibly provide nuclear weapons to terrorists. It could act in ways that nuclear powers have not done so up to now. This is a very great danger.
BILD: The new US President announced in his outstanding speech in Cairo a new chapter in the relationship with Islam. Does this announcement fill you with concern?
PM Netanyahu: President Obama called for a new beginning of peace and reconciliation in the Middle East and this is a goal we definitely share. I support his idea of a regional peace and I hope the Arab countries will come forward and begin to normalize their relations with Israel. This would help us and the Palestinians and would also help to expand the circle of peace. President Obama said emphatically, that the bonds between Israel and the United States are unbreakable and that the Arab world has to accept the fact that Israel is here to stay. These were very positive statements.
BILD: Obama extends the hand of freedom especially to Iran. He even offers the mullahs the chance of cooperation in the nuclear power industry...
PM Netanyahu: I spoke to president Obama at some length about the problem of Iran's nuclear ambitions and he said he would seek to persuade the Iranians to stop their nuclear weapons program. He also said he would leave all options open to ensure that the program is discontinued. I think its crucial for the Iranian regime to recognize that there is a growing understanding in the international community that what they are doing is unacceptable, and that there is an international front developing that is committed to prevent the Iranian regime from acquiring nuclear weapons.
BILD: Furthermore, in his 'Islam speech' the US President showed a vast amount of understanding for the rights of the Palestinians...
PM Netanyahu: The approach that seeks to solve the problem by having the Palestinians living peacefully and freely next to us is pretty common around the world. What hasn't been expressed clearly enough was the consensus that exists on the Israeli side and that has characterized successive governments. We want to live peacefully next to the Palestinians and we dont want to govern them. We want them to have all the powers to govern themselves - except those handful of powers that could threaten Israel. A Palestinian government doesn't need rockets and missiles. This is one of the two concerns we have. If we are asked to recognize a Palestinian state we expect the Palestinians to recognize a Jewish state. Israel is the nation-state of the Jewish people with a lot of non-Jewish people living as full and equal citizens -Arabs, Muslims, Christians. So the recognition of Israel as the nation state of the Jewish people is essential for peace. This is the central and most important element that has been missing and also the reason that this conflict continues for so many years. Secondly, a Palestinian state must be a demilitarised state because we don't want to have another Gaza. We don't want to have another Iran next to our borders. And we don't want to have a repeat of our experiences we had with thousands of rockets and missiles fired at us from a territory that we vacated and is now controlled by the Palestinians. This is essentially what "Hamastan" is. It's an Iranian-backed terrorist base from which Palestinians fire rockets into Israeli towns and homes. We cannot afford to create another Hamastan on our borders.
BILD: The Central Council of Jews in Germany openly criticised Obama's Middle-East politics. The Secretary General recently wrote, "the United States would, possibly deliberately, force Israel's head of state into a corner to gain an advantage in the Islamic world. Do you consider the US President as an equally passionate friend of Israel as his predecessor George W. Bush?
PM Netanyahu: President Obama said two things. One, that the bond between America and Israel is unshakeable which, importantly, he said in Cairo. But he also said in that same speech that the United States cannot impose a settlement. That is something that has to be negotiated between the two parties. Both statements of President Obama reflect something very deep in the relationship between Israel and the United States through succesful US administrations and through succesful Israeli governments. It‘s a very powerful bond of ideals and values and also of interests and I think that this continues under President Obamas administration and certainly under my government.
BILD: In your speech at Bar-Ilan University you spoke of the possibility of a Palestinian state for the first time. How serious was your proposal? Why did your suggestion meet with such negative reaction in the Arab world?
PM Netanyahu: I really don't know. I think they should have embraced my proposal. What's wrong with the idea that the Arab world recognize Israel as the nation-state of the Jewish people with full and equal citizenship for its minority populations? What's wrong with the idea that the Palestinian state next to Israel not be a militarized one that could threaten Israel? Whoever really wants peace has no reason to reject my proposals.
BILD: Even Egypt's President Mubarak, who still adheres to the legendary Camp David peace agreement, commented on your proposal with the words: "Nobody will support this appeal. Neither in Egypt, nor anywhere else...."
PM Netanyahu: I have great respect for Egyptian President Mubarak. He is certainly one of the important leaders who has kept the peace. And this peace between Israel and Egypt has weathered a lot of storms. This peace has lasted for more than thirty years and has withstood the test of time. President Mubarak has done everything to keep and expand the peace. However, there may be a misunderstanding about the things I said. I do not place preconditions on entering peace negotiations with the Palestinians. And that applies to Syria, Saudi-Arabia or any other Arab world countries. I clearly stated the twin foundations of achieving a final peace settlement that overwhelmingly unite the people of Israel. They all seek peace, they want an end to this conflict, they are prepared to go a long way but they are not prepared to sacrifice the right of the Jewish people for a state of their own in their ancestral homeland. And they absolutely and correctly insist that this peace must maintain our security. If you give up security, you will have neither security nor peace.
BILD: Your brother Jonathan tragically died in 1976 during the legendary rescue of Israeli hostages in Entebbe. Does such dreadful personal experience make negotiations with the Palestinians more difficult?
PM Netanyahu: On the contrary, I think nearly every family in Israel knows someone who died or has experienced the agonies of war and the pain of terrorism. The people of Israel pray for peace because we know and have suffered the consequences of war. So, on the contrary, if you have suffered a personal tragedy, it just reinforces the desire for achieving peace. But it's a desire for a peace that can be defended.
BILD: Can Hamas or Hizbullah ever be a partner in peace for you?
PM Netanyahu: The quartet has put forward very simple conditions for Hamas: they have to recognize the right of the State of Israel to exist. They have to cease terror. They have to accept previous agreements. They have to be prepared to negotiate peace with Israel. But the constitution of Hamas calls for the exact opposite, for destroying the State of Israel and for the murder of Jews. So if they changed their character, they wouldn't be the Hamas any more. Regrettably, I can tell you that I see no indication Hamas is moving in that direction. In fact, they are moving in the opposite direction. They are stockpiling weapons courtesy of Iran and continue to plan their terror campaign against Israel.
BILD: Do you trust the Palestinian President?
PM Netanyahu: I trust the principles I lay down, and if leaders agree to them then I'll obviously work to advance peace.
BILD: Of all the Islamic states, Turkey, a reliable ally to Israel for centuries, is now one of the biggest critics of your country. How isolated does Israel feel in the world?
PM Netanyahu: The Muslim world has to make a choice between the path of radical Islam and the path of moderation and modernity, and most of the governments in the non-Arab Muslim world have opted for this and also for friendly ties with Israel. But the pressure is unrelenting because the forces of radical Islam are arming themselves. They are threatening the moderates and all leaders and all governments have to take a stand here.
BILD: The German government described your offer to the Palestinians as a "step in the right direction". What do you expect from Germany?
PM Netanyahu: Germany has been a great friend for Israel and I have the highest regard for Chancellor Merkel. There is no question about the friendship of the German government and also the basic goodwill that animates German - Israeli relations. We know the tragedies of our history but Germany has been one of Israel's steadfast friends, fair and decent. I also appreciate Chancellor Merkel's clear stance against anti-Semitism, against the statements and policies that have emanated from Iran. And I appreciate the support of the German government in the quest for a genuine and endurable peace. Chancellor Angela Merkel is truly a reliable friend of Israel.
BILD: Is the special relationship between Germany and Israel compatible with active trading between Germany and Iran?
PM Netanyahu: I've spoken about that with Chancellor Merkel and with other European leaders and I know that there are efforts to reduce trade with Iran, and some have succeeded, but this should be a constant effort.
BILD: Israel was heavily criticized during the Gaza offensive. Do you think this war fueled a new kind of anti-Semitism in the world?
PM Netanyahu: The initial response of most of the world was sympathy for Israel. The initial response of many in the Arab world was a thinly disguised hope that Israel would do away with Hamas because Hamas is threatening many of the moderate Arab countries as well. It's basically a violent terrorist proxy of Iran. But as the fighting dragged on, the media coverage never shows the whole movie, just the last few frames of Israeli soldiers going into Gaza. It doesn't show the thousands of rockets that preceded this action. But I always ask critics of Israel what they would do. What would the German people expect if you had seven rockets on Berlin, Bonn or on Bremen, let alone seven thousand like Israel has absorbed from Gaza? These terrorist rocket attacks were totally unprovoked and with the explicit purpose of murdering our children and directly targeting the innocent. When the people concentrate and think about that, they would change their perspective towards Israel.
BILD: When can we welcome you in Berlin?
PM Netanyahu: I hope very soon. I spoke to Chancellor Merkel, who kindly invited me, and I intend to take her up on her kind invitation. There is a deep friendship between our countries and I appreciate the fact that the German government responded positively to my call for peace and I hope they can help us garner the support of the Arab countries to begin to invest in Israel, to invest in my program of an economic peace that moves parallel to the political peace.
I think that if we can create economic zones, tourist attractions and commercial projects that would create thousands of jobs for Palestinians and give their youth a future, as well as creating common bonds between Israel and our Palestinian neighbors, this would help weaken the radicals and strengthen the moderates, and this is good for peace. And Germany could help push this economic peace forward.