A confederation is a permanent union of different sovereign states through governmental bodies to achieve defined purposes. The most known examples of this are Switzerland and the European Union. The same would apply for a Jewish and a Palestinian state.
In this confederation, both Israel and Palestine would be able to retain their sovereignty, their ability to police their territories, and exercise religion in the way they prefer the most.
•First, Hamas wants openly to eradicate Israel and kill all the Jews in the region, so they must be defeated in Gaza.
•Second, Netanyahu must resign after the war, not only because of the mistakes that made possible the invasion and massacres of October 7, but also because of his unwillingness to recognize a Palestinian state, so a new government that would be ready to do so must be formed.
•In the Israel-Palestine confederation, the Israeli Defense Forces (IDF) will be in charge of the military (air, naval and ground troops). That should also mean that the atomic bombs that Israel already has, but refuses to acknowledge, should be publicly displayed.
•The confederation would have three states: Gaza, West Bank and Israel. Also, a federal district administered by a joint cabinet would be created that will include all Jerusalem. This federal district would ensure that the access to the holy sites is granted, and no state can claim Jerusalem as their exclusive capital.
•Besides the military, the confederation will manage the equal water distribution, electricity, and interstate roads.
•The three states would be bound by an economic union and ultimately freedom of movement.
•Each state can choose to be ruled by its own laws. If Palestine (West Bank and Gaza) wants to have sharia law, Jewish settlers must respect those laws. If Israel wants to keep its Jewish identity and give Jews from any place of the world priority to relocate into the country, Muslim Arabs must respect that.
•A land swap will need to happen. Israel will annex contiguous territories in the West Bank with a clear majority of Jewish settlers (250,000 in total), whereas the rest (575,000) will become Palestinian citizens while keeping Israeli nationality. On the other hand, Israel will cede areas next to Gaza and the West Bank that have or could have a significant Muslim/Arab population.
•The Muslim Arabs and their closest descendants that were expelled from Israel in the 1948 war would be offered to return to Israel and the possibility to have Israeli citizenship. But before, they must clear a security test to make sure they do not pose a threat to the Jewish state.
•Jews make 73% of the population in Israel (7.3 million of 9.7), 700,000 Jewish settlers live in colonies in the West Bank, and zero Jews are present in Gaza. Arab Muslims account for 20% of the population in Israel (1.95 million), in the West Bank live 2.7 million of them, and in Gaza the population is 2.3 million.
•Each state will be in charge of its own tax and welfare system but freedom of labor mouvement will be allowed, at least following a meritocratic point system like in Australia, that is adjusted to the demand in the different sectors of the economy.
•Israel has never started any of the 8 wars fought against the Arab nations and has clearly won almost all of them. So Israel will keep the Golan Heights.
This Israel-Palestine confederation legislation would require a qualified majority (around 60%) of both the Israeli and the Palestinian representatives to vote in favor of the legislation. Moreover, both the Israeli and Palestinian governments would maintain their veto power; if a proposal is very popular in the confederation, but an extremist government wants to block it, this will affect its legitimacy in the next elections.
The confederation is not a one-state solution, it is a third government designed to enhance the lives of the Palestinians and the Israelis by achieving: security, justice, economic development and national identity.
Israel will still be a Jewish majority state with much better security guarantees, and Palestinians will finally get their much demanded state.