Netanyahu given chance to rule | The Australian
Kadima won the most number of seats of any party in last week's election - 28 compared to Likud's 27 - but the Right bloc of parties, led by Likud, won more seats than the Centre-Left bloc, led by Kadima.
This left Mr Peres with the job of choosing which leader was most likely to form a stable coalition government.
But all leaders - including Mr Netanyahu and Mr Lieberman - have publicly said they want a broad coalition that includes Kadima. The two men have sufficient experience in Israeli politics to know that unless a coalition government is broad-based, it tends to be short-lived.
Ms Livni's political strategy appears to be to position herself in opposition to be ready to try to increase her support in any future election rather than be subject to the fortunes of a government dominated by Mr Netanyahu and influenced by Mr Lieberman.
Ms Livni and Mr Netanyahu have strongly different views on the Israeli-Palestinian conflict.
Ms Livni is more aligned to the position of the Obama administration, which wants to seek a two-state solution, while Mr Netanyahu is publicly very sceptical of any such solution.
Yesterday, Mr Peres met faction leaders from 10 parties that won seats last week. But given that two of the Centre-Left's largest parties - Kadima and Labour - have opted to go into opposition, it was inevitable Mr Netanyahu would be given the task.
Mr Lieberman yesterday met Mr Peres and told him he recommended Mr Netanyahu as leader. But he added: "We recommend Benjamin Netanyahu only in the framework of a broad government. We want a government of the three biggest parties, Likud, Kadima and Yisrael Beiteinu."
Outgoing Defence Minister Ehud Barak, leader of the Labour Party, added to the general sense of uncertainty when he told a meeting of Labour members of the Knesset: "The picture is complicated and disturbing when Yisrael Beiteinu is the one to recommend who Israel's next prime minister will be. We are left with only one option, and that is to decide not to recommend anyone for the premiership."
Meanwhile, US senator John Kerry, chair of the US Senate Foreign Relations Committee, became the first senior US politician to visit Gaza since the 22-day war with Israel. He joined two other US congressmen, Keith Ellison of Minnesota and Brian Baird of Washington.
During talks with relief officials at the main UN compound in Gaza City, Senator Kerry was handed a letter from Hamas, addressed to President Barack Obama.
Senator Kerry did not meet any Hamas representatives and stressed that his trip to the impoverished territory, which no US official had visited for years, did not indicate a shift of policy towards Hamas, which is listed by the US as a terrorist organisation.
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