The crisis in Shas over leader Aryeh Deri’s resignation letter following revealing of secret tapes and the state comptroller report revealing failures of the military and the government were the top stories in today’s Hebrew newspapers. But the long-discussed Palestinian UN proposal for the establishment of a Palestinian state barely made the news despite being finally submitted yesterday nor did the killing of a Palestinian youth by an Israeli soldier yesterday.
 
The US said it would not support the latest draft of the Palestinian UN bid, saying it “sets arbitrary deadlines for reaching a peace agreement and for Israel's withdrawal from the West Bank, and those are more likely to curtail useful negotiations.” However, the Arab ambassadors endorsed the bid, which now specifically states that E. Jerusalem will be the Palestinian capital and that construction on settlements should stop. Haaretz+ wrote that the new draft ‘sharpens the Palestinian stance’ also on borders and refugees.  According to a statement by the Palestine Liberation Organization: "The draft resolution calls for the resumption of negotiations to solve all final status issues by no later than 12 months after the adoption of the resolution and ensures the end of the Israeli occupation that began in 1967 will come no later than the end of 2017," 
 
**An Israeli soldier shot a Palestinian high school student in the heart yesterday afternoon, killing him. The IDF said Imam Jamil Ahmed Dweikat, 17, and his friend were throwing rocks on a road endangering drivers and that soldiers shot at them in an attempt to apprehend the youth. The Israeli newspapers provided no interviews from the Palestinian side. Maariv did not even report on the killing. But Nael Talat Thiab, 17, who was also shot by Israeli soldiers, said his friend was killed in 'cold blood,' Maan reported. Thiab said that he and Dweikat had just finished a school exam and decided to go to a park in their village on their way home. "We arrived to the edge of the park on foot, but we were surprised to see an Israeli soldier coming toward us from atop a hill. He shot at us four times, but he missed us. But then he fired again -- one single shot -- and hit Imam directly in the heart.” Imam’s father, Jamil Dweikat, 43, was at work at a construction site inside Israel when he was given news of the incident. More details and photos from Maan. Maan wrote that “the slain youth is the 50th Palestinian to be killed by Israeli forces in the West Bank in 2014, bringing the total Palestinian dead at Israeli hands so far this year to around 2,335, including those who died in Gaza as a result of Israel's summer offensive.”

• US finds Israel fourth most 'unacceptable' country - Foreign Policy article examines number of times state department referred to 'unacceptable' behavior this year; Israel ranked between North Korea and Pakistan. (Ynet) 
• Israeli troops shoot, injure 2 Palestinian teens driving in Beit Ummar - Israeli forces opened fire at a Palestinian vehicle in the town of Beit Ummar north of Hebron on Monday just before midnight, injuring two teenage Palestinian boys. (Maan)
• Palestinian owners access Bethlehem farm after 15-year Israeli ban - Settlers from nearby El David and Kfar Eldad settlements entered the area and insulted the farmers but did not succeed in preventing the al-Tnuh family from reaching its lands, which was arranged through prior coordination with Israeli military. (Maan) 
• Palestinians will outnumber Israeli Jews in 2016 - report - Report published by Palestinian Bureau of Statistics says even as the average Palestinian family decreases in size, number of Palestinians living in both Israel and territories will exceed that of Jews beginning in 2016. (Haaretz+ and Maan)
• State comptroller: Sensitive installations still vulnerable to rocket attacks - Also found lagging were training schedules for IDF reservists, maintenance of equipment and vehicles. (Haaretz+)
• Comptroller blasts Jerusalem Formula One waste - Report revealed many serious flaws in the conduct of the municipality and its subsidiary the Ariel company in managing the event. (Haaretz+) 
• 2014 comes to close with 8.3 million Israelis - Some 176,000 babies were born and some 23,000 new immigrants arrived in Israel over the past year; 6.2 million residents are Jews, 1.7 million Arabs. (Ynet)
• Poll: Labor-Hatnuah even with Likud at 24 seats each - If poll holds true, either side would be able to put together a coalition, although the options available to Likus would be greater and potentially more stable. (Haaretz+)
• Israel to allow 150 Palestinian students to leave Gaza via Erez - The students are enrolled in schools abroad but trapped in Gaza due to the closure of the Rafah crossing with Egypt. Both sides also agreed to allow entry into Gaza of heavy machinery for removing rubble from buildings destroyed during recent Israeli offensive. (Maan)
• PA ministers visit Gaza to spearhead reconstruction and quell dissent - Delegation was met at Erez crossing by demonstrators protesting at the inaction of the Ramallah-based reconciliation government. (Haaretz and Ynet)
• IDF to withdraw from Gaza border communities - Four months after end of Operation Protective Edge, soldiers will remain on guard at only 3 communities adjacent to border with Gaza Strip. (Ynet)
• Gaza to stop import of electrical appliances from Israel - The Palestinian Environmental Quality Authority of Gaza said they have a negative impact on the environment and that the fees of importing these appliances are "only beneficial" to Israel. (Maan) 
• Security guards assault, detain Palestinian near Ofra settlement - Yasser Abu Zeina was walking near the entrance of the settlement on his way to Silwad when vehicle of settlement's private security forces reportedly stopped him, the security guards beat him before taking him into the settlement. (Maan) 
• Israeli forces open fire on Gaza fishermen, near border fence - Meanwhile Israeli forces elsewhere shot at a group of Palestinians near the border fence. The two incidents ended without any injuries but were a reminder for Palestinians of Israel's continuing control over Gaza's land and sea. (Maan)
• Top magazine showcases Israeli architects, designers, artists - Wallpaper*, one of the world’s most prominent design magazines, dedicates part of its January 2015 issue to Israel, focusing on a number of up-and-coming designers, as well as profiling leading architects. (Ynet)
• Israeli court extends detention of 5 Palestinians for Facebook posts - The five were detained along with three others in mid-December for their Facebook posts. Following interrogation Israeli authorities decided to indict them on charges of "incitement and support for terror organizations." (Maan)
• Turkish media target Jews more than any other group, report finds - Report on hate speech in Turkish media found 130 instances of hate speech against Jews between May and August 2014. (Haaretz)
• Egypt bans annual festival honoring Moroccan rabbi - Court cites 'moral offenses' committed in previous years at the three-day festival celebrating the birth of Rabbi Yaakov Abuhatzeira. (Haaretz) 
• Obama doesn't rule out opening an Iran embassy in his final two years - U.S. president says he hopes the U.S. and Iran can reach a nuclear deal so Islamic Republic could rejoin the world community. (Agencies, Haaretz)
• U.S. senator tells Netanyahu Congress will follow his lead on Iran sanctions - In Jerusalem, Lindsey Graham says Senate will vote on Iran sanctions bill in January. (JTA, Haaretz)
• American arrested in Israel to be held until end of trial  - Everett Adam Livvix, 30, of Robinson, Illinois, is charged with possessing weapons and planning to blow up Muslim holy sites in Jerusalem. Police say he posed as a former U.S. Navy SEAL. His lawyer says he denies the charges. (Israel Hayom)
• An Israeli singer at the Vatican - Soprano Chen Reiss sings in front of 700 million viewers at Christmas Mass led each year by pope. (Ynet)