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Two parties claim Israel victory Israeli rivals claim election win
(31 minutes later)
Final votes are being counted in Israel where the leaders of the country's two main parties are claiming victory in snap general elections. The leaders of Israel's two main parties have claimed victory in a snap general election.
Results are thought to be close. Exit polls give the governing centrist Kadima Party 30 seats to 29 for the right-wing opposition Likud. Benjamin Netanyahu of the centre-right Likud said the "nationalist camp" had won - a reference to the strong showing of smaller nationalist parties.
Neither will have enough seats to win outright, and so will need the support of other parties. But Tzipi Livni, leader of the governing centrist party Kadima, said she was ready to lead the country.
Exit polls give Kadima 30 seats to 29 for Likud. Neither will have enough seats to win outright.
Ultra-nationalist Yisrael Beitenu is forecast to be third.Ultra-nationalist Yisrael Beitenu is forecast to be third.
Predictions would push the Labour party - led by Defence Minister and former Prime Minister Ehud Barak - into an unprecedented fourth place.Predictions would push the Labour party - led by Defence Minister and former Prime Minister Ehud Barak - into an unprecedented fourth place.
Final results will come within days.Final results will come within days.
Likud, led by Benjamin Netanyahu, had held a solid lead in opinion polls prior to the election, but Kadima, led by Foreign Minister Tzipi Livni, closed the gap in the final days. Likud had held a solid lead in opinion polls prior to the election, but Kadima closed the gap in the final days.
ComplicationsComplications
Cheers erupted at Kadima's headquarters as the exit polls were announced on Israeli TV.Cheers erupted at Kadima's headquarters as the exit polls were announced on Israeli TV.
"Today the people chose Kadima," Ms Livni later told crowds of ecstatic supporters. Israelis define their politics according to their views on the conflict with the Palestinians Jeremy Bowen's Election Diary"Today the people chose Kadima," Ms Livni later told crowds of ecstatic supporters. Israelis define their politics according to their views on the conflict with the Palestinians Jeremy Bowen's Election Diary
"The land of Israel does not belong to the right, just as peace does not belong to the left.""The land of Israel does not belong to the right, just as peace does not belong to the left."
But Mr Netanyahu also claimed victory, saying a Likud-led government would lead Israel. Ms Livni appealed to Mr Netanyahu to join a national unity government that she would lead.
However, several smaller parties whose support Ms Livni would need are opposed to some of her policies, especially her pledge to exchange land for peace with the Palestinians.
Earlier Mr Netanyahu claimed victory, saying a Likud-led coalition would lead Israel.
"With God's help I will lead the next government," he told cheering crowds at Likud's Tel Aviv headquarters."With God's help I will lead the next government," he told cheering crowds at Likud's Tel Aviv headquarters.
Analysts say Avigdor Lieberman, leader of Yisrael Beitenu, could be a key figure in deciding the next government. The closeness of the forecasted result is in many ways the worst outcome for Israeli democracy, says the BBC's diplomatic correspondent Jonathan Marcus, as it sets the scene for days and probably weeks of fractious political horse-trading.
"Lieberman has emerged as the kingmaker," said Menachem Hofnung, a professor of political science at Hebrew University. Likud looks to have already sown up a deal with the strongest of the orthodox Jewish religious parties - Shas - ahead of the election, our correspondent adds.
"He is the winner of these elections and it depends on who he sides with over the next few weeks as to who will be prime minister." Once the final results are in, President Shimon Peres will consult with party leaders to determine who among them stands the best chance of forming a coalition government, but he does not have to choose the leader of the largest party.
Much will depend upon what the Yisrael Beitenu leader Avigdor Lieberman tells the president, and which way he leans may be decisive in determining who is the first to be asked to try to form a coalition government, our correspondent says.
Correspondents say that a right-wing coalition would complicate things for US President Barack Obama, who is promising a strong push for peace in the Middle East.Correspondents say that a right-wing coalition would complicate things for US President Barack Obama, who is promising a strong push for peace in the Middle East.
Coalition taskCoalition task
Elections were called early after Ms Livni failed to form a new government following Prime Minister Ehud Olmert's decision to step down last year amid a corruption probe against him.Elections were called early after Ms Livni failed to form a new government following Prime Minister Ehud Olmert's decision to step down last year amid a corruption probe against him.
The Labour Party appears to have performed poorlyThe Labour Party appears to have performed poorly
Even if the exit polls are proved right, a strong showing by right-wing rivals will make it difficult for Ms Livni to form a coalition government.Even if the exit polls are proved right, a strong showing by right-wing rivals will make it difficult for Ms Livni to form a coalition government.
Israel's president traditionally chooses the leader of the party that wins the most parliamentary seats to form a coalition government.Israel's president traditionally chooses the leader of the party that wins the most parliamentary seats to form a coalition government.
But he can also choose any party leader who he believes has the best chance of doing so.But he can also choose any party leader who he believes has the best chance of doing so.
President Shimon Peres is expected to hold talks with party leaders later this week, after the final results are in.President Shimon Peres is expected to hold talks with party leaders later this week, after the final results are in.
Once he has asked a party leader to form a government, he or she has up to 42 days to do so. If the coalition attempt fails, Mr Peres can ask another leader to assume the task.Once he has asked a party leader to form a government, he or she has up to 42 days to do so. If the coalition attempt fails, Mr Peres can ask another leader to assume the task.
Mr Olmert will stay on as caretaker prime minister until a new government is formed.Mr Olmert will stay on as caretaker prime minister until a new government is formed.
The election has been dominated by security issues following Israel's offensive in the Hamas-ruled Gaza Strip.The election has been dominated by security issues following Israel's offensive in the Hamas-ruled Gaza Strip.
Although the Palestinian Authority has not expressed preference for any candidate, its senior negotiator, Saeb Erakat, expressed dismay that right-wing parties had performed so well.Although the Palestinian Authority has not expressed preference for any candidate, its senior negotiator, Saeb Erakat, expressed dismay that right-wing parties had performed so well.
"It is obvious the Israelis have voted to paralyse the peace process," he said."It is obvious the Israelis have voted to paralyse the peace process," he said.