The potential explosiveness of Har Homa is that it pre-empts that decision, even before the talks begin.

ECONOMIST: Step back from Har Homa

Mr Netanyahu's decision to create Har Homa on the outskirts of East Jerusalem is intolerable to the Palestinians because they see it as pre-empting future negotiations on the city's status.

ECONOMIST: Vanishing peace

On Sunday, a spokesman for Israeli Housing Minister Zeev Boim told CNN that his office will take steps this week that could lead to the construction of 121 houses in Har Homa and 763 houses in Pisgat Zeev.

CNN: Israel under fire over settlement plans

But, as opinion polls have found, and Mr Netanyahu apparently missed, a good half of the country was uncomfortable with his decision to exercise that claim right now, at Har Homa, in the teeth of Palestinian, other Arab and international opposition.

ECONOMIST: Will Netanyahu bring in Peres?