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Despite his hard-line and inflammatory rhetoric, however, Lieberman may be a pragmatist. Unlike many on Israel's right — including Netanyahu — Lieberman supports a two-state solution to the Israeli-Palestinian conflict. In a Ha'aretz interview after taking office, Lieberman said Israel should abide by the 2002 Roadmap, which calls for a Palestinian state.

The Roadmap obliges the Palestinians to stop violence and dismantle the capabilities of terror organizations, and reform their political institutions, before any movement toward the creation of a Palestinian state. But, in the same phase, it obliges Israel to freeze settlement construction and dismantle all settlement outposts built since March 2001.

Lieberman appears to recognize those obligations, and in the Ha'aretz interview, he mocked Olmert and his team as hypocrites who advocated peace but did little to achieve it. "How many outposts did Olmert, Barak and Livni evacuate?" he said.

Netanyahu sent a similar message by appointing his longtime aid Uzi Arad to be national security advisor. Since 2007, Arad, reportedly because the Bush administration considered him a counterintelligence risk, has been denied a visa to come to the United States. You know Arad must have pushed some sensitive buttons to have ticked off an otherwise forgiving Bush administration.

The messages that Netanyahu and Lieberman have sent in the past 48 hours highlight a fast-evolving concern for the Obama administration: The new Israeli government has adopted a domestic and foreign policy almost entirely opposed to that of the United States.

And those policy differences center on three issues: Israeli domestic policy toward its Arab minority (which constitutes about 20 percent of Israel's population), Israel's intent to occupy the Palestinian West Bank and the Syrian Golan Heights indefinitely, and Israel's desire for the United States to militarily degrade Iran's industrial capability, in particular its nuclear program.

The European Union’s crisis of leadership during the economic downturn was thrown into sharp relief on Wednesday, as the current president of the 27-nation bloc labeled President Obama’s emergency stimulus package “a way to hell” that will “undermine the stability of the global financial market.”

What made the situation even more trying for those who hope that the European Union might find a common voice in this crisis was that Mr. Topolanek’s own governing coalition collapsed on Tuesday. The Czech opposition party, which favors bigger increases in domestic spending during the slump, won a no-confidence vote on his leadership.

Despite widespread fears that European nations could prolong the current recession unless they act in concert with one another and the United States, the slump has highlighted differences over deficit spending, interest rates and possible bailouts for new union members in the East. There are few signs that the alliance is developing the political leadership to match its economic weight.Britain, like the United States, has undertaken an aggressive fiscal stimulus and slashed interest rates. But Germany and France have opposed calls for further large stimulus packages and even greater deficit spending, while the European Central Bank has kept interest rates higher than they are in the United States and Britain. Germany and even some Central European countries opposed calls by Hungary for the creation of a single rescue fund for heavily indebted countries in Eastern Europe.