Israel is faced with many of the problems it encountered upon its creation in 1948: disputed borders, a heterogenous demography, a hostile Palestinian population largely uprooted from its ancestral home, inimical neighbours, dependence on US and European goodwill and a domestic militaristic mindset that makes the country rely primarily on force to achieve its goals. The article reviews these issues and emphasizes the urgency to achieve a fair and peaceful settlement of the Israeli-Palestinian dispute.