BACKGROUND: The parties that make up Israel's governing coalition

Mar 31, 2009, 16:46 GMT

Jerusalem - The political parties that make up Israel's new governing coalition:

Likud: Led by new Prime Minister Benjamin Netanyahu, the Likud is Israel's largest hawkish party, opposed to a total Israeli withdrawal to the pre-1967 borders and its relinquishing control over East Jerusalem.

Although Netanyahu has steadfastly refused publicly to endorse the creation of a Palestinian state alongside Israel, his agreement with coalition partner, the Labour Party, states that the government will work toward a peace agreement with the Palestinians.

Netanyahu has also advocated building 'economic peace' with the Palestinians alongside political peace.

The Likud also advocates a free market economy, albeit one which 'is sensitive to social concerns.'

Likud won 27 seats in the February 10 election.

Yisrael Beteinu (Israel Our Home): The second-largest party in the coalition advocates a 'land for land and peace for peace' approach to the Israeli-Palestinian issue, supporting the exchange of Israeli areas with a large Arab population for Israel being allowed to retain Jewish settlements in the West Bank.

The party also advocates continued Israeli control over East Jerusalem.

Yisrael Beteinu advocates a free-market economy.

The party was founded in 1999 by Avigdor Lieberman, and draws its core support from new immigrants, mostly from the former Soviet Union, and hardliners who think Israel's approach to peace making has been unrealistic.

Yisrael Beteinu won 15 seats in the February 10 election, making it the third largest party in the Knesset.

Labour Party: Once the dominant force in Israeli politics, the party has seen its Knesset representation shrink to a mere 13 seats.

Labour favours continued peace talks with the Palestinians to reach a two-state solution, and leader Ehud Barak has intimated he is not opposed to allowing Palestinians sovereignty over some Arab neighbourhoods in East Jerusalem .

The party is opposed to some of the economic liberalism which has dominated Israel's recent economic policies and wants to act to reduce social gaps in income.

Labour joined the Netanyahu-led government after a bitter internal debate, where opponents of the move claimed Labour would become a 'fig-leaf: for a right-wing, hawkish government.

Shas: Representing mainly religious Jews of Sephardi (Middle Eastern or North African) descent, Shas' main focus is on religious life in Israel, and it campaigns vehemently for greater observance of Jewish laws.

Although the party is opposed to any division of Jerusalem, Judaism's holiest city, it has a more pragmatic approach to other territorial concession, if these would save lives. It is, however, opposed to unilateral concessions.

One of the most important policies on Shas' agenda is the provision of religious education to its constituents, often in poorer areas, along with other social welfare programmes.

Led by Eli Yishai, but subservient to spiritual leader Rabbi Ovadia Yosef, the party received 11 seats in the recent election.

Jewish Home: A recent amalgamation of several ultra-nationalist and religious parties, it opposes the creation of a Palestinian state in the West Bank and rejects the evacuation of Israeli settlements and the division of Jerusalem.

It favours the privatization of state-owned companies and wants to reduce manpower in the public sector. The party seeks to reduce taxes that it says hold back economic growth and encourage tax relief for productive sectors of the economy. The party also supports tax relief for large families.

The Jewish Home is headed by first-time legislator Rabbi Professor Daniel Hershkowitz, and has three seats in parliament.

Still negotiating entry into the coalition:

United Torah Judaism: An alliance of two ultra-Orthodox parties, it advocates a stricter application of Orthodox Jewish law, and also campaigns for the extension of housing and social benefits to the growing ultra-Orthodox population.

It is prepared to join governing coalitions, but generally declines to assume ministerial portfolios, for to do so would mean acceptance of the secular Israeli state.

United Torah Judaism currently has five seats in parliament.