Several titles cover the apparent resignation of Palestinian Authority (PA) Prime Minister Salam Fayyad, who is thought to have quit his position following increased disputes with PA President Mahmoud Abbas. The Independent details the difficulties in the relationship between the two leaders, while the Times says that Fayyad’s resignation would be a blow to the possibility of resuming peace talks between Israel and the Palestinians, with Fayyad enjoying the trust of Israel and Western countries. The Telegraph takes a similar line but quotes an unnamed US State Department official suggesting that Fayyad may not leave his post in the end.

An editorial in the Financial Times says that the time has come for US President Obama to act on his rhetoric and take concrete steps to bring about a peace agreement between Israel and the Palestinian Authority. Meanwhile, an editorial in the Guardian argues that an Israeli halt to settlement building and creation of a unified Fatah-Hamas Palestinian leadership would pave the way for talks.

The Evening Standard, Metro and the Telegraph online all report that five women were briefly detained yesterday at the Western Wall in Jerusalem, in an ongoing dispute over prayer rights at the site. The Independent includes a lengthy feature on the long-running campaign which has intensified over recent months for women to hold their own prayer services at the Western Wall, a departure from Orthodox Jewish tradition, banned under current regulations.

The Times notes that the South African government has adopted separate labelling on Israeli goods manufactured in the West Bank and East Jerusalem which will no longer be displayed as having been “made in Israel.” The Financial Times reports that industry leader Noble Energy has urged the Israeli government to decide on its gas export policy, warning that procrastination over the division of revenues from Israel’s newly developed natural gas resources could deter investors. Meanwhile, the Guardian online includes a review of the Oscar-nominated Israeli documentary, The Gatekeepers.

The Times publishes an interview with the recently chosen leader of the Syrian opposition, Ghassan Ghitto, a Syrian-born Texan telecoms executive. Ghitto makes the case for the West to supply weapons to the Free Syrian Army and says that under his rule, Syria would not descend into sectarian conflict. The online editions of the Telegraph, Financial Times and Independent report that the bloody conflict in Syria was highlighted at a meeting of G8 foreign ministers yesterday in London, where Foreign Secretary William Hague warned that the United Nations Security Council is failing to prevent a major humanitarian disaster in Syria.

The Israeli media this morning focuses on the proposed budgetary plans presented yesterday by Finance Minister Yair Lapid to Prime Minister Benjamin Netanyahu. Lapid’s measures include a raise in income tax and VAT and cuts to child welfare allowances, ultra-Orthodox institutions and settlements. Lapid is also recommending a significant cut to the defence budget and the introduction of a ‘luxury’ tax in certain goods. Yediot Ahronot and Haaretz refer to Lapid’s plan as “austerity measures” while Israel Hayom focuses on the cut in child allowances. Sof Hashavua highlights criticism of Lapid’s financial plan from opposition leaders including Labour Party head Shelly Yachimovich and Meretz leader Zahava Galon, who referred to the measures as “lip service” to taxing the rich.

Maariv reports Israeli concerns after the Austrian Foreign Minister yesterday indicated in a meeting with Prime Minister Netanyahu that his country could withdraw its soldiers from the United Nations peacekeeping force on the Israel-Syria border if the European Union arms embargo on Syria were lifted. Austria currently supplies the largest contingent to the peacekeeping force. Meanwhile, Israel Radio News says that the Erez and Kerem Shalom border crossing with the Gaza Strip have been reopened by Israel after they had been closed for a week following Gaza rocket fire on southern Israel.