The Palestinian National Authority (PNA) said on Wednesday new Israeli Prime Minister Benjamin Netanyahu in his inauguration speech "offered nothing" concerning the peace talks with the Palestinians.

Saeb Erekat, a senior Palestinian negotiator, said, "Netanyahu failed to endorse the two-state solution. He failed to explicitly support the establishment of an independent Palestinian state. He made only vague commitments to continuing negotiations."

In his speech before the Israeli Knesset (parliament) Tuesday, Netanyahu said he can find common grounds for peace with moderate Arab countries and that Israel, under his government, would continue efforts to reach a comprehensive peace with the Palestinians.

"We do not want to rule the Palestinians... I say to the Palestinian leadership that if you really want peace, we can achieve peace," Netanyahu said at a special parliamentary session for swearing in his new government.

"Under the permanent status agreement, the Palestinians will have all the authority necessary to rule themselves," he said, while stressing that the PNA must do its part to "fight terror" if it is serious about peace.

Erekat said the notion of Palestinians ruling themselves means "the establishment of an independent and fully sovereign Palestinian state based on 1967 borders, with East Jerusalem as its capital. For Netanyahu, it means something very different."

Erekat said Netanyahu missed the opportunity of setting the "stage for meaningful negotiations to end the conflict and to show that he is a real partner for peace. He missed that opportunity."

The traditionally hawkish political veteran of Israel put a brake to the Oslo peace process during his first term as prime minister in late 1990s.