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Netanyahu poised to take office Netanyahu poised to take office
(about 5 hours later)
Benjamin Netanyahu, leader of Israel's right-wing Likud party, is due to be sworn in as prime minister for the second time, after a gap of 10 years.Benjamin Netanyahu, leader of Israel's right-wing Likud party, is due to be sworn in as prime minister for the second time, after a gap of 10 years.
His coalition government is the largest in Israeli history, with ministers ranging from the hard-liner Avigdor Lieberman to Labour veteran Ehud Barak. His cabinet is Israel's largest ever, with hard-liner Avigdor Lieberman as foreign minister and Labour veteran Ehud Barak as minister or defence.
Iran's nuclear programme is likely to top its security agenda.Iran's nuclear programme is likely to top its security agenda.
Western states have voiced concern at the coalition's likely stance on a two-state solution with the Palestinians.Western states have voiced concern at the coalition's likely stance on a two-state solution with the Palestinians.
Mr Netanyahu is expected to present his cabinet to parliament in the afternoon, after which MPs will vote on it. On Monday evening he said his government would "do all it can to achieve a just, long-lasting peace with our neighbours and the entire Arab world".
Confetti cabinet But has said in the past that he sees no need for the Palestinians to have full separate statehood.
It has taken weeks of grinding negotiation to create this multi-party cabinet, the BBC's Tim Franks reports. He is due to present his cabinet to parliament in the afternoon, after which MPs will vote on it.
Ministerial posts have been sprinkled like confetti in an effort to sweeten the coalition deals. Gaza strike
This comes as Gazan medical sources said two Palestinians had been killed in an Israeli air strike in the Gaza Strip.
The Israeli military confirmed it had carried out the strike, saying the men were seen trying to plant an explosive device near the border fence and were later found to be carrying other weapons.
One Israeli soldier was lightly injured in an exchange of fire when ground troops crossed the fence shortly after the air strike.
Tensions over Gaza, with no agreed ceasefire in place in the wake of Israel's bloody operation in January, are one of the pressing security issues the new government will face.
Others include concerns over Iran's nuclear programme, and whether to pursue a peace deal with Syria.
'Confetti cabinet'
It has taken weeks of grinding negotiation to create this multi-party cabinet, the BBC's Tim Franks says, with ministerial posts sprinkled like confetti in an effort to sweeten the coalition deals.
Mr Netanyahu's biggest achievement has been to persuade the historically left-leaning Labour party to join his government, but this will be a coalition with a strong right-wing tilt, our correspondent adds.Mr Netanyahu's biggest achievement has been to persuade the historically left-leaning Labour party to join his government, but this will be a coalition with a strong right-wing tilt, our correspondent adds.
Mr Netanyahu himself has said that he sees no need for the Palestinians to have full separate statehood. The formation of the government ends nine months of uncertainty since outgoing Prime Minister Ehud Olmert announced plans to step down in the face of multiple corruption investigations.
The new foreign minister will be Mr Lieberman, leader of the hard-right Yisrael Beiteinu party. His Kadima party, which backs a two-state solution and is now lead by outgoing Foreign Minister Tzipi Livni, won the most seats in February elections.
Mr Barak will retain his post as defence minister. But right-leaning parties did better overall, so her rival, Mr Netanyahu, was considered more likely to be able to form a coalition and invited by President Shimon Peres to try.
The next parliament will also be a test for Kadima which, having been the main governing party, will now be the main opposition party. Talks aimed at bringing Kadima into a unity government failed, with Ms Livni saying the parties' platforms were too different.
Kadima is wedded to a two-state solution but opposition is new territory for it, our correspondent notes. Sitting in opposition will be new territory for the party, our correspondent notes, and Israeli commentators are divided as to whether the party will profit from its distinctiveness or simply implode.
Israeli commentators are divided as to whether the party will profit from its distinctiveness or simply implode.