Senior officials in Ramallah told Al-Monitor that the Palestinian Authority (PA) — alongside its statehood drive at the United Nations — will look for new plans to advance the two-state solution in coordination with the international community. 

The PA is advancing innovative plans that build on the fractured structure left behind by the war. Such an "out-of-the-box" idea has surfaced on the sidelines of the peace talks overseen by US Secretary of State John Kerry: a future economic federation between three sovereign states — Israel, Palestine and Jordan. Such a structure would facilitate the resolution of the permanent status issues and eventually lead to greater economic stability. The idea is based on the geographic and demographic proximity of the three countries, as well as on today's new geopolitical reality of a coalition of pragmatic Sunni countries, including Egypt, Jordan, Saudi Arabia and the PA.

Officials in Ramallah said the Fatah-led PA needs strong Arab backing to eventually enter a new negotiation process. Palestinian President Mahmoud Abbas does not reject the proposition of institutional links to the Hashemite Kingdom, as long as it is accomplished between two sovereign states, under the umbrella of the Arab League, and with Egypt's support.

Palestinian officials say they see value in the economic federation idea, which would be crafted along the lines of the European model of "Benelux" (the Belgium-Netherlands-Luxembourg Federation). Indeed, the idea was raised in the past by late PLO leader Yasser Arafat himself. I recall meetings with Arafat where he outlined this vision and its tremendous economic benefits.