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Netanyahu poised to take office Netanyahu poised to take office
(9 minutes 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 cabinet is Israel's largest ever, with hard-liner Avigdor Lieberman as foreign minister and Labour veteran Ehud Barak as minister or defence.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.
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".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".
But has said in the past that he sees no need for the Palestinians to have full separate statehood.But has said in the past that he sees no need for the Palestinians to have full separate statehood.
He is due to present his cabinet to parliament in the afternoon, after which MPs will vote on it.He is due to present his cabinet to parliament in the afternoon, after which MPs will vote on it.
Paul Wood reports from Jerusalem The difficulties of coalition building in Israel mean this is a big, big government, with some 30 ministers.
The last time Mr Netanyahu was PM, he failed to complete his term - most Israeli governments don't and this one, an unwieldy and unhappy amalgam of opposites, stands less chance of success than most.
First order of business will be to deal with the economic crisis. That's hit Israel just like everywhere else, although, additionally, there may be signs that the Shekel is seriously over-valued.
This new administration doesn't believe that a negotiated Middle East peace settlement is possible with the Palestinians. They will try instead to contain the conflict while pushing forward Mr Netanyahu's plan for an "economic peace", which involves granting the Palestinians something less than a state.
The main issue as far as Mr Netanyahu is concerned is Iran's supposed nuclear ambitions. Whether or not to bomb Iran will be the new prime minister's most momentous decision - and one he may make quite soon. Profile: Benjamin Netanyahu
Gaza strikeGaza strike
This comes as Gazan medical sources said two Palestinians had been killed in an Israeli air strike in the Gaza Strip.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.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.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.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.Others include concerns over Iran's nuclear programme, and whether to pursue a peace deal with Syria.
'Confetti cabinet''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.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.
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 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.
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.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.
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.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.
Talks aimed at bringing Kadima into a unity government failed, with Ms Livni saying the parties' platforms were too different.Talks aimed at bringing Kadima into a unity government failed, with Ms Livni saying the parties' platforms were too different.
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.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.