Israel, Egypt discuss Mideast peace

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Play VideoIsraeli FM: Settlements not obstacle to peace

Over in Cairo, Egyptian President Hosni Mubarak has met with Israeli Defense Minister Ehud Barak amid efforts to revive the Middle East peace talks.

They discussed the topic of a two-state solution between Israel and the Palestinians.

After Sunday's meeting, Barak said fresh guidelines proposed by Prime Minister Benjamin Netanyahu offer a unique opportunity for the long-stalled Mideast peace process.

The plan calls for a demilitarized Palestinian state to recognize Israel as a Jewish country. The Israeli Defense Minister also stressed that Egypt can play a vital role in settling conflicts in the region.

Egyptian President Hosni Mubarak, right, shakes hands with Israeli Defense Minister Ehud Barak before their meeting at the Presidential palace in Cairo, Egypt, Sunday, June 21, 2009, to discuss U.S.- backed efforts to revive Mideast peace efforts.(AP Photo/Amr Nabil)