1. DUE TO THE FREEZE: COMPENSATION FOR SETTLEMENTS.
Interior Ministry formulates criteria for allocating tens of millions of shekels to communities that have been hurt by the halt in construction. Funds to be defined as "security grants" and will be set according to level of security threat, distance from Green Line and number of residents.
2. DOWN TO SHELTERS.
National home front exercise to reach peak this morning. Sirens to sound at 11:00 and citizens throughout the country will enter protected spaces.
3. AFTER THE INVESTIGATION: OLMERT MET WITH SHULA ZAKEN.
Channel 2: Former PM was with other suspects last night at Jerusalem wedding. Police: We will check.
YEDIOT AHRONOT
1. Siren at 11:00.
COUNTRY PUT TO THE TEST.
Rising and falling sirens to sound for 1.5 minutes throughout the country this morning. Israelis will be asked to enter protected spaces.
2. INVITATION TO THE WHITE HOUSE.
Today: White House Chief-of-Staff Rahm Emanuel expected to invite Netanyahu to meeting with Obama next week.
3. OLMERT INTERROGATED FOR EIGHT HOURS: "I DID NOT RECEIVE A BRIBE."
YISRAEL HAYOM
1. Nasrallah: We will rain missiles on Israel.
HOME FRONT EXERCISE: SIRENS AT 11:00 THROUGHOUT THE COUNTRY.
Residents will be asked to enter protected spaces. Additional sirens expected throughout the day in various areas. Search and rescue exercises to be held. Home Front Command: 40% of the population lacks gas masks.
2. WHAT DID OLMERT AND ZAKEN TALK ABOUT?
After eight-hour interrogation about the Holyland affair and release under restrictive conditions – former PM went to Aryeh Deri's daughter's wedding. He spoke with suspects Shula Zaken and Yehudah Pollack. Police: We will check if he violated conditions of release.
WALLA!
1. Home front exercise.
SIRENS THROUGHOUT THE COUNTRY AND GOING INTO SHELTERS.
Today: Israelis to take active part in Turning Point 4 major home front exercise. Hundreds of thousands to go into shelters at sound of 11:00 siren.
2. APPARENT: OLMERT WILL NOT BE INVESTIGATED OVER HIS CONVERSATION WITH ZAKEN.
Yesterday: Former PM attended wedding of Aryeh Deri's daughter and was seen talking with those involved in Holyland affair. Police, it seems, will not investigate him for violating order barring him from being in contact with them.
3. AIR FORCE ATTACKS GAZA TARGETS, 15 WOUNDED.
Air Force attacked tunnels in response to Kassam and mortar fire last night. Palestinians reporting that 15 people were wounded as a result, four seriously.
4. NETANYAHU TO BE INVITED TO MEET WITH PRESIDENT OBAMA.
White House Chief-of-Staff Rahm Emanuel in Israel for his son's bar mitzvah; will meet with PM Netanyahu this evening and invite him to White House meeting with US President Barack Obama.
5. NASRALLAH THREATENS: WE WILL ATTACK SHIPS EN ROUTE TO ISRAEL.
At main rally marking tenth anniversary of IDF withdrawal from southern Lebanon, Hezbollah Secy.-Gen. sent clear threat to Israel. Nasrallah said that if it is decided to blockade Lebanon's coast in any future war, his organization would attack ships en route to Israeli shores.
NANA10
1. HOME FRONT EXERCISE REACHES IT PEAK: SIRENS TO SOUND THROUGHOUT THE COUNTRY AT 11:00.
Rising and falling siren to sound for 1.5 minutes, during which residents are requested to go to protected spaces and stay there for ten minutes. At focus of exercise – chemical missile attack on Defense Ministry in TA. Emergencies to be simulated in several places.
2. AIR FORCE ATTACKS TARGETS IN STRIP – 15 PALESTINIANS WOUNDED.
3. NASRALLAH: IN EVENT OF BLOCKADE, WE WILL ATTACK SHIPS EN ROUTE TO ISRAEL.
[Headlines for Walla! and Nana10 are from their websites as of 10:40. The print edition of Ha'aretz was unavailable today.]
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SUMMARY OF OP-EDS FROM THE HEBREW PRESS
Yediot Ahronot refers to reports in yesterday's newspapers to the effect that Prime Minister Benjamin Netanyahu has requested a double bed and no stopovers for his flight to Canada later this week. The author asserts that, "Heads of state, presidents and prime ministers work hard and a lot, and they deserve comfortable sleep and work conditions, even in the air. As far as state expenditures are concerned, this is a small outlay."
Ma'ariv believes that, "Whoever is really jealous of their privacy should not post excessive information about themselves on the Internet, especially not on sites such as Facebook, the purpose of which is to share information."
Yisrael Hayom discusses the flotilla of boats bent on reaching the Hamas-controlled Gaza Strip. The author says that, "There is no genuine siege of Gaza," and cites the various supplies that are regularly admitted to the Strip. The paper urges its readers to realize that, "Hamas is uninterested in the welfare of Gaza's residents but in building up its own power, which is directed – first and foremost – against those living under its radical Islamic terrorist regime and, of course, against Israel," and bids those on the flotilla to remember Gilad Shalit, "who is being held in brutal conditions that strongly contrast with the conditions that Hamas prisoners receive in Israeli prisons." The author declares that, "The organizers of the flotilla are not motivated by humanitarian concerns but the desire to embarrass Israel and hurt its ability to defend itself against terrorism."
The Jerusalem Post discusses the bill proposed by former Histadrut, Chairman MK Amir Peretz to raise the minimum wage, and warns that it really could lead to layoffs, reduced production and stalled growth. Despite this, the editor urges the government to take the measures necessary to fight Israel’s high poverty rates and the huge gaps between rich and poor, such as negative income tax and training the workforce to perform skilled work. The editor believes that "As that trend accelerates, productivity will rise and so will wages. As a result, fewer workers will need politicians like Amir Peretz to push for an unrealistically high minimum wage."
Haaretz understands Australia's decision to expel the Mossad representative in that country in protest of alleged use of forged Australian passports in the assassination of Mahmoud al-Mabhouh, and hopes that "the highest levels of both the government and the defense establishment are taking the expulsion of the Mossad representatives from Britain and Australia seriously and drawing all the necessary conclusions from the aftermath of the assassination in Dubai." The editor censures the government for "gambling with so valuable a strategic asset as its foreign relations."
[Eitan Haber, Hadar Horesh and Dror Eidar wrote today’s articles in Yediot Ahronot, Ma'ariv and Yisrael Hayom, respectively.] 
