First of all the Palestianian Authority representing the whole of the people should stop all rocket attacks by HAMAS so there would be no incursion by ISRAEL; I believe an outside military force either from UNITED NATIONS or ARAB/USA JOINT FORCE to divide the territory in a buffer zone is necessary. I believe this would allow for the Palestinian State to be organized with ISRAEL/PALESTIAN AUTH.  Once the land is agreed for the Palestinian State and  plan progressed, the two peoples should be able to live together in peace.  Borders will make a difference.

If quick action is not taken to quell the rocket attacks ISRAEL should occupy whatever area is needed until an outside force moves in to stop the unlawful activity, such as UN OR OUTSIDE FORCE.

I believe that the European Union will enventually be the final force promising ISRAEL peace, with military strength present in region to stop hostility by HAMAS; the EU will fail to keep their promises eventually and ISRAEL will be attacked again violently; just my opinion