Israel's Foreign Minister has warned Benjamin Netanyahu that the governing coalition will fall part if the Prime Minister doesn't take punitive measures against the Palestinian Authority for its decision to bid for independent statehood at the United Nations. A report in Israel's Yedioth Ahronoth newspaper claims that Avigdor Lieberman has demanded that Netanyahu responds to the unilateral Palestinian step by cancelling the Oslo Accords, annexing the large West Bank settlement blocs and withholding tax transfers to the Authority.

Earlier reports said that Lieberman had threatened the Palestinians with "very serious" consequences in the event of a UN vote in favour of an independent state. Israel, claimed Lieberman, "won't stand still" if a Palestinian state is recognised by the UN. Lieberman's deputy, Danny Ayalon, backed the call for punitive measures, although he expects the UN to reject the Palestinian application.

According to Netanyahu's deputy, Silvan Shalom, the Palestinian bid constitutes a violation of the agreements signed between the two sides.