Finance Minister Yuval Steinitz on Tuesday dismissed Palestinian Authority Prime Minister Salaam Fayad's threat to declare a de facto Palestinian state.
Speaking to Israel Radio, Steinitz said there was no place for unilateral measures and threats.
He stressed that there would not be a Palestinian state before Israel's security interests were guaranteed.
The finance minister called on the Palestinians to conduct negotiations in good faith and noted that there was a significant improvement in the Palestinian economy due to the various measures taken by the Netanyahu government.
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