'This Week' Transcript: Tax Deal

But what I have just said is that this is not nearly enough relative to the objective of -- of having to see the occupation come to the end in the course of this coming year. I think it's eminently possible. There is no reason why we should not by now have begun to see evidence of the occupation beginning to be rolled back. We haven't yet seen such signs.

It's very important for this -- our effort, the one that we just referred to, to begin to be seen as state in the making. I think it's hugely important not only for us Palestinians, but also for Israelis as well.

AMANPOUR: And do you -- you know, a lot of Palestinians have said, well -- leadership has said, well, we're just going to declare our own unilateral state. Are you committed to that? Do you think that's useful?

FAYYAD: What we are committed to is statehood, not declaration of statehood. We're looking for a state. We did make a declaration of statehood going back to 1988. This time around, we're looking for real state on the ground.

AMANPOUR: And, Ms. Livni, during the elections, you did win more votes.

LIVNI: Yes.

AMANPOUR: Is it time for you to try to go into a -- make another government, a coalition government?

LIVNI: No, this is -- the current Israeli coalition is the prime minister's -- Netanyahu's choice. He decided to build this coalition with what he called his natural partners. My views about the peace process and the need to achieve peace are -- are different from this coalition.

I offered Netanyahu in the past -- more than once -- to have a different coalition that can not only speak about the idea of two states for two peoples, but also translate it into peace treaty with the Palestinians. He decided to have this coalition, unfortunately.

Because part of my frustration today is that we are sitting together, and two years ago, it was not -- excuse me, it was not news, it was not big deal. I mean, we met, Israelis and Palestinians, on a daily basis in the negotiations room, helping each other to solve problems on the ground.

So I truly hope that there is a better understanding today in Israel by the public and also leaders and politician that peace treaty is our own interest. It's not a favor to the United States, and not even to the Palestinians.

AMANPOUR: On that note -- I wish we had more time -- thank you both, Prime Minister Fayyad...

FAYYAD: Thank you.

LIVNI: Thanks.

AMANPOUR: ... Tzipi Livni. Thank you so much for joining us.

And coming up next, the tax cut debate on our roundtable, with George Will, Nobel Prize-winning economist Paul Krugman, Cokie Roberts, and political strategist Matthew Dowd.

And later, an exclusive interview with former British Prime Minister Gordon Brown. As one of the first political leaders to bail out banks, he has a unique perspective on the current financial crisis.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

OBAMA: I've been keeping the first lady waiting for about half an hour, so I'm going to take off. But...

B. CLINTON: I don't want to make her mad. Please go.

OBAMA: You're in good hands, and -- and Gibbs will call last question.

B. CLINTON: Well, I had quite a good time governing. I -- I am happy to be here, I suppose, when the bullets that are fired are unlikely to hit me, unless if they're just ricocheting.

There's never a perfect bipartisan bill in the eyes of a partisan.

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