In what may well be one more ominous sign of the impending collapse of the 1979 peace treaty, Egypt announced that it was abrogating a 2005 deal to ship natural gas to Israel. Coming as it does in the midst of an Egyptian presidential election in which the Muslim Brotherhood’s remaining candidate in the race is the favorite and with virtually all sides in the country’s political system expressing hostility to Israel, it’s hard to take the stated reason for the decision — a payment dispute — at face value.
But while some in Israel are taking a dark view of the situation, one person who might be expected to see things in the harshest possible terms is sounding an optimistic note. Foreign Minister Avigdor Lieberman, a man regarded by most foreign observers as an extreme reactionary as well as a bull in a china shop, downplayed the Egyptian decision and said it was just a business dispute that could be resolved. This reaction tell us a lot about how badly the chattering classes have underestimated Lieberman as well as perhaps providing some basis for optimism that despite the grim political situation in Egypt, there is some hope that the peace with Israel can be salvaged. Lieberman clearly understands that the pipeline deal is the nexus of two unpopular yet unrelated issues: peace and the corruption of the Mubarak regime.