CBNNews.com - Israeli Foreign Minister Tzipi Livni says her country must give up "half of the land of Israel" in order to keep it a Jewish and democratic state.

Livni told a conference of American Jews in Jerusalem Monday that land concessions to the Palestinians are the path to peace.

That's a sharp contrast with Benjamin Netanyahu, her rival for prime minister.

Netanyahu opposes large concessions of land through peace talks and says negotiations should focus on building the Palestinian economy.

This week, Israel's president will choose either Netanyahu or Livni to try to form the next government.

After last week's elections, Netanyahu is still favored to be the next prime minister.