This morning's key headlines from GenerationalDynamics.com

• As Israeli election approaches, tensions escalate on border with Gaza
• Palestinian Authority will go to U.N. to ask for Palestinian state
• EU funding crisis as Britain leads a walkout on talks

As Israeli election approaches, tensions escalate on border with Gaza

Israelis run for shelter after warning of incoming rockets on Saturday (AFP)

Both sides are threatening revenge on the border between Israel and Gaza, as attacks have escalated sharply in the last few days. On Thursday, a huge tunnel from Gaza to Israel exploded, injuring one soldier. On Saturday, Gaza showered Israel with rockets, and fired an anti-tank missile at an Israeli jeep, wounding four soldiers. Israel retaliated with missile attacks on four targets in Gaza, killing and wounding dozens of Gazans. Islamic Jihad is believed to have launched the barrage of missiles.

Israel's Defense Minister Ehud Barak said, "The IDF responded harshly to the incident and further action will be considered in the coming days. We will not tolerate any escalation along the border."

The radical Popular Resistance Committees in Gaza released a statement vowing that "the Zionist enemy will pay a high price for this crime against Gaza."

Some Israelis are speculating that Hamas is repeating a pattern from 2008. Just after the November 2008 American election, and some three months before the next Israeli election, violence escalated sharply between Gaza and Israel, leading to the "Operation Cast Lead" war between Israel and Gaza. Now, just after the American election, with an Israeli election a few months off, violence is escalating sharply again. The speculation is that Hamas or Islamic Jihad or some other militant group in Gaza is using the chaos surrounding these elections as an opportunity to provoke a new war. Jerusalem Post and AFP and Haaretz

Palestinian Authority will go to U.N. to ask for Palestinian state

A spokesman for the Palestinian Authority (PA) said that the Palestinian leadership and the Arab countries have confirmed a decision to go the United Nations General Assembly to gain recognition of a Palestinian state on pre-1967 borders. The PA knows that it already has enough votes in the General Assembly for recognition, although the General Assembly can't give the state full U.N. membership without Security Council approval of a resolution, which the U.S. would veto. They are considering asking for a vote on November 15 or 29. November 29 is the anniversary of the date in 1947 that the U.N. General Assembly partitioned Palestine into Jewish and Arab regions. Once the General Assembly acts, the PA plans to pursue Israel for "war crimes" in the International Criminal Court. Israel has indicated that it will impose sanctions on the PA if its leader go to the General Assembly. Jerusalem Post

EU funding crisis as Britain leads a walkout on talks

Britain's MEPs (Members of European Parliament) have led an alliance with Germany, the Netherlands, France, Sweden and other nations to walk out of talks on providing an additional $22 billion in the 2012 and 2013 European Commission budgets, and Britain's prime minister David Cameron renewed his threat to veto any budget increase above the level of inflation. Britain's Finance Minister Greg Clark pointed out that the European Commission was calling for "sound public finances" among the member nations, and therefore:

"So it is frankly breathtaking that, knowing all that, the Commission does not practice what it preaches by proposing reductions, but instead asks for a 6.8% increase in this budget over last year. ...

Europe must practice the fiscal discipline that it demands of member states.

Ordinary working people, whether in the UK or elsewhere, cannot be asked to pay more to Europe when they are enduring cuts at home."

The negotiations are extremely acrimonious, and it's possible that a major EU summit meeting scheduled for November 22 will have to be postponed. Telegraph (London) and UK Press Association

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