Israeli Foreign Minister Tzipi Livni has sparked controversy by saying a Palestinian state would provide "a national solution" for Israel's Arabs

Politicians from the minority Arab community have demanded she clarify if it means that Arabs citizens will face loss of rights in Israel or expulsion. Israeli politicians have long grappled with the issue of a growing proportion of ethnic Arabs in the Jewish state. "Transfer" has been mooted explicitly only by far right-wingers in Israel. Ms Livni is hoping to become Israel's next prime minister, and opinion polls suggest she is in a close race with the right-wing Likud party.