Although he was about to leave office, Bill Clinton refused to give up and he presented a “bridging proposal” which set up further talks in Washington and Cairo and then Taba in Egypt. These talks were not at the top level, but differences were narrowed without being overcome. There was more flexibility on territory and it was reported by EU observers that Israeli negotiators accepted the concept of East Jerusalem being the capital of a Palestinian state. A statement afterwards said that “it proved impossible to reach understandings on all issues”. The Israeli Prime Minister Ehud Barak, fighting an election campaign, said that “nothing is agreed upon until everything is agreed upon ” and said that he could not commit a subsequent government to what he called the “ideas” coming out of the talks. With the election of Ariel Sharon in February 2001, time ran out.
[from Global Policy Forum, 21 May 2007]