SPIEGEL: The US is now demanding further gestures from Israel following the crisis over the Jerusalem settlements. Will you deliver?

Lieberman: Within one year we have made many gestures towards the Palestinians. We expect the Americans to put pressure on the Palestinians to stop anti-Israeli activities in the international arena. The Palestinians have to withdraw their law suits against Israeli officers, stop the boycott of Israeli goods and all incitement. What incentives do we have for agreeing to further compromises?

SPIEGEL: Does the prospect of signing a peace treaty with the Palestinians mean nothing?

Lieberman: First of all we want security. The international community is making a strategic mistake. You cannot impose peace. First you have to provide security and prosperity, then you can bring about a comprehensive solution.

SPIEGEL: So in your view the negotiations with Palestinian President Mahmoud Abbas are useless?

Lieberman: No. We have to keep the political process alive. Talks are better than nothing. The problem is that we don't know whom Abbas represents. His Fatah party lost the elections in 2006. In 2007, Hamas took over power by force in the Gaza Strip.