The 7th Herzliya Conference on the Balance of Israel's National Security was held during January 21-24, 2007. The conference examined the array of dangers, threats and difficulties Israel has faced since early 2006, identified a broad web of problems in all of the fundamental strata upon which national security is based, and proposed strategies for action. The impression arising from the conference was that Israel is embroiled in a profound and multifaceted strategic crisis, with its systems in collapse. The contribution of the conference was, first and foremost, to display a panoramic view that facilitated recognition of the problems and a realization of how widely and deeply they have spread. Secondly, it contributed by offering strategies for dealing with these problems. Concurrently, the conference presented an encouraging assessment of the national mood and the relative strength of other systems, including the economic and financial ones. The gathering was marked by expressions of optimism and confidence in the ability of the society and the state to successfully address the defects at home and the threats from abroad. The conference called for the reinforcement and enhancement of tools for confronting the threats and, in this context, ways to renew and strengthen the army were suggested. A proposal for a major reform that would reorganize and enhance the education system also figured prominently at the conference. The conference conducted a penetrating discussion regarding the strategy required vis-à-vis Iran. All, including those who think it is impossible to deter Iran, agreed that the principal effort must be aimed at prevention, and that the use of economic and political leverage could perhaps enable reaching an arrangement that would slow down the Iranian nuclear project. The question of deterrence as a practical alternative vis-à-vis the current Iranian regime – or even if this regime were to change – remains open to debate. Some believe there is no way to avoid a military confrontation against the threat and that policy and the buildup of forces should be adapted to this alternative in any case.