THE WAGES OF OCCUPATION:

President Reuven Rivlin warned Sunday that predicted changes to Israel's population makeup could harbinger severe economic and social issues that will threaten the future of the Jewish state and bring about a "new Israeli order."

Speaking at an annual conference, Rivlin cautioned against the deterioration of Israeli society brought by burgeoning Arab and ultra-Orthodox, or Haredi, birthrates, and voiced concern for the future of "Israeliness" -- or Israeli identity -- that may become subsumed by four separate groups split along "tribal" lines -- Arab, ultra-Orthodox, national religious and secular.

"The 'new Israeli order' is not an apocalyptic prophecy. It is the reality. A reality that can already be seen in the composition of the first-grade classes in the Israeli education system," Rivlin told the 15th Herzliya Conference.

Israeli opposition head Isaac Herzog warned Sunday that, if efforts to reach a peace deal in the region fail, "the biggest threat to the existence of the State of Israel" is the possible emergence of a binational state roughly divided among Jews and Arabs.

"In about a decade, the Arabs between the Jordan and the Mediterranean will be a majority and the Jews a minority," Herzog stated during an address at the Herzliya Conference. "The Jewish national home will become the Palestinian national home. We will be, again, for the first time since 1948, a Jewish minority among an increasing Arab majority."

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